I was reading an article yesterday that the Aussie/Dollar pair fell due to a sharp fall in oil prices (38.20 down to 36.70) which the market sentiment considers as "Risk off", and as oil prices recovered today, so did the Aussie/Dollar pair as the market was apparently "Risk on".
What makes small rising oil prices "risk on"? If anything i thought the Dollar would rally as fed Yellen said they are implementing a more cautious approach to rate hikes due to weaker global growth and fallen commodity prices.
At what point does the recovery in oil prices turn from risk on to risk off? And why is the dollar risk off? Is it still largely considered a safe haven?
**EDIT If you feel the need to down vote can you please explain why. I'm wanting to learn, if the question or my current understanding is really bad can you please explain what i am doing wrong. Thank you