ridethepig | Australian Yields for the Yearly Close📌 @ridethepig AU02Y Market Commentary 18.12.2020
This position which arises after the telegraphed breakout from the 10Y and thus creates space for the front end. A typical manoeuvre for the AU and NZ yields:
The analysis of the starting position shows us that the control now exists on the bid; because we know that it is the path of least resistance, so the rule is; when the market is strong we are buyers and when weak, we are sellers.
The AUD which is being "flanked" from all sides (FED, RBNZ et al) now has commodity shortages entering into play to put the cherry on top. Remain bid AUD for as long as possible; maintain contact with commodities for this cycle.
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