AUD/USD inter-market: Out of sync with VIX ahead of RBA?

The AUD/USD pair kicked-off the week on a weaker footing, although managed to recover ground and now stages solid rebound in an attempt to reclaim 0.77 handle.

The latest upmove in the Aussie can be largely attributed to resumption of the uptrend in oil prices, while a recovery in gold also lent support to the resource-linked AUD. More so, higher European equities also lifted overall market sentiment and therefore, underpinned the demand for higher-yielding currencies.

However, the price-action witnessed in the VIX (CBOE volatility index), a risk barometer,  fails to justify the persisting  risk-on market profile, and hence, in turn can be said that the AUD/USD pair trades in separate ways with the VIX. The VIX futures are seen rising +2.63% to 13.65, moving back towards daily tops reached at 13.80 levels.

Moreover, the yield spread between the 10-year treasury yields and that of its Australian counterpart tilts in favor of the AUD, which once again justifies the rebound in the major.

We have a Big week ahead for the AUD/USD pair in terms of main market moving events, with the RBA interest rate decision due tomorrow. While the Australian retail sales and trade balance data will precede the US payrolls data lined up for release later this week.