**As seen in Macro Walk report 02/04/2022, subscribe at cablefxm.co.uk/reports
On the latest issue of the Macro Walk report, the FX spot correlation section shows AUD and the MSCI World equity index having a positive and statistically valid correlation coefficient of 76% for the last 25-days. If we switch that to the S&P 500 equity index, the 25-day correlation goes down to only 13%, it actually turned slightly negative a week ago. Looking back at a year of SPX and AUD relationship, we note that the correlation is not only positive (as expected) but on average, it tends to be statistically valid or above 50%
One could point to the case of AUD driven by shifts in RBA hike expectations and the SPX by individual names (Meta earnings). Eyes on this week's risk events and a potential correlation regression to the mean (not intending to deliver a directional view here).
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