Report this content as inappropriate on the site:
Answer:
Well that's risk correlation... People buy stocks when they feel comfortable with the economic outlook, and of course, they buy higher yielding currencies against safer currencies at this time too. It is no surprise seeing the s&p500 index correlates with currencies like the audusd, when people dump their stock, like what's happening now, there will be people who also at the same time dumping riskier currencies, like the euro or the austrlian dollar and head back to safe heaven like the japanese yen. Also many times, we see bonds rise as people flee to the safety of the us debt in time of economic trouble.
