The bushfire crisis in Australia triggered an AUD/USD sell-off, but the rebuilding is likely to stimulate a recovery.
Other currencies used to measure risk aversion have seen movement from the growing U.S.-Iran conflict, but they haven't sustained moves and volatility for major currencies remains low nL1N29D08I.
There's heightened fear but no true risk aversion.
This pattern grew out of the global crisis in 2008, with market trends driven by stimulus that has fuelled an unusual degree of risk taking.
Last year was racked with uncertainty; stocks went to records.
For stock traders bad news has become good news, and that has spread into currency markets, with risky currencies including AUD rallying late 2019 as volatility declined.
The bushfire crisis has done great damage, but Australia will rebuild and that stimulus should underpin AUD.
The 100-DMA 0.6831 and daily ichimoku cloud 0.6800-25 should provide strong support.
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