For this one we are talking about an extremely disruptive swing that will continue to cause high beta FX outflows in the immediate term. The nice problem we have on our hands with this, is that we are now entering into a new long-term bullish trend for AUDUSD. So we 'know' this pullback will have a minimum flow towards the 0.650x handle before bulls have to deal...
📍 Overview This chart comes after a conversation with @Alamakota. Brexit move played in this game was triggered in Jun 2016, you will notice on the Q chart how four years after buyers demonstrated a full retrace, before sellers rejected the highs and there we have the winning move. The UK is entering into the house of economic bondage in the ST and MT. Covid has...
We shall open the chapter on AUD with the Monthly chart and as usual work our way down towards the inner time frames. The aim for the frontal attack here comes with a double whammy from USD devaluation and Commodity appreciation. AUD buyers are aiming to carry out the deeply laid plan (although it was almost refuted after the Covid crisis) since the macro flows...
On the commodity currency front, looking for risk markets to reject the move quickly this week and trigger the flows towards USD. I recommended standing aside last week, and here I have been actively adding full sized AUDUSD shorts in the 0.660x handle. The healthy cleanse of USD longs in the antipodeans will make things a lot easier to trade with the next leg...
A normal move, but one which has a deeper meaning after the Chinese ban on Australian beef. Here tracking closely 0.650x resistance to mark another important high here. It is a clearly loud signal on the foreign policy side of their relationship considerably weakening, the Giant Panda (PBOC) who was once always on the AUD bid has taken cover. While Australia...