I have been trading for 2 years now and I keep noticing the correlation between the equity market of a country and it's money market.
For example, since US is a consumer based economy, a stronger equity market leads to a stronger dollar, and in export based country like Japan and China, the relationship is reversed. Commodity currencies such AUD and CAD strengthen when it's equity market gains. In foreign exchange, the differential between these two variables seems to drive the direction(not magnitude) of the currency pairs. Any thoughts?