What to watch in Australia's market-currency contradiction

• The market contradiction with the Australian dollar persists, writes Daryl Guppy.
• That is, the Australian dollar is falling and the Australian market is making new 10-year highs.
• Traders are alert for evidence of a pullback in the Australian market if the Aussie dollar fails to hold support near $0.74.

The Australian dollar in various denominations.

Brendon Thorne | Bloomberg | Getty Images

The market contradiction with the persists. The Australian market is making new 10-year highs, although has stalled near resistance at 6,300. New and persistent market highs are a sign of economic strength, although the Reserve Bank of Australia continues with low interest rates while it waits for growth to pick up.

When the Australian dollar last fell dramatically from $0.94 to $0.69 in 2014 to 2016, it matched a fall in the Australian Index from 5,976 to 4,746. We are not currently seeing the same dramatic fall in the Australian dollar, but