But it's nothing really fundamental: Is it interest rates backing up in the U.S.? Rate expectations backing up? Or the fact that the dollar fell too far too fast last week? It's probably a combination of all of that.
We saw a lot of dollar selling last week, so the dollar's regaining some lost territory.
The risks for the dollar are skewed to the upside.
The Australian dollar is relatively more sensitive to the global growth cycle -- not just commodities, but leverage to trade with Asia, especially China.
But I am not sure (whether) the Australian dollar is a forward indicator or just a concurrent one.
The dollar is gradually moving out of its sweet spot. Once the Fed's tightening cycle is over, dollar bears are going to focus on the current-account deficit again.