Dollar bounce shortlived - NAB

NAB on the trending dollar weakness underpinning global markets:

Key points:

• The National Bank of Australia anticipates a short-term reversal in the US Dollar's recent weakness, but the bounce will be short-lived thanks to "breakdown in the relationship between yield differentials and the dollar".
• The NAB states that Treasury yields "can now make something of a comeback as a positive USD influence", but that positive influence won't survive long as the depreciation trend is largely speculative in nature.