So recently I've been studying the AUD/USD pair and I am really confused about the price-movement during the financial crash in 2008. Shouldn't the pair rise in value if the dollar plummets? I'm obviously missing something here would love some help thanks a lot.
side note: Looks like the japan 225 also went down during that time ... I wonder where the investors went? to gold maybe but the the gold rally is a small spike compared to the other currencies total plummet... cash withdraw? banks?
Remember a lot of financial institutions went bust and more got into serious difficulties. Governments helped prop them up but I would imagine (I didn't trade back then) that the amount of fx trading would have fallen, particularly in riskier pairs