AUDUSD and Stocks Stabilize the Last Minute, EURUSD Still at Risk

After three days of solid risk aversion (helping the dollar while weighing the Euro and Aussie dollar), there was finally a break in the storm. Those that follow the fundamentals and technicals note that this breather came at a critical time - just before the AUDUSD and S&P 500 took the next step towards a critical reversal. Looking at the fundamental developments of the past session, the backdrop has not actually improved. Rather, the hesitance to usher in the next leg down is more likely in respective to upcoming event risk: US GDP. With major event risk ahead, we will build pressure behind a potentially more explosive move (bullish or bearish) later.