The Aussie Dollar recovered above the former primary support level at $1.04, testing resistance at $1.06. Breakout would indicate an advance to $1.10. But there are several question-marks over the latest advance. First, the rally has accompanied a similar recovery on the ASX 200 (to test resistance at 4500). If resistance holds, as expected, the AUD is likely to retreat.
* Target calculation: 1.04 – ( 1.10 – 1.04 ) = 0.98
Second, the CRB Commodities Index confirmed a primary down-trend with a sharp fall below 335. The primary trend is unlikely to reverse at this stage and another down-swing would drag the Aussie Dollar lower.
* Target calculation: 330 – ( 350 – 330 ) = 310
Colin,
Love the new format,makes great reading.
Mike
You made a very good point. Thanks
Based on the current world data I disagree with the dollar being shakey as Asia comes around we should see the AUD hold it’s own in the current market dispite the worries about USD as Asia strengthens exports from AUSSIE .
Hi Ben, The AUD is definitely not a safe haven currency when compared to JPY or CHF. It is in a primary down-trend against the CHF and threatens to go the same way with the yen. Regards, Colin
Hi Collin, yes you are right it’s not a Safe haven but unlike the YEN which is a strong currencies ,the YEN is also struggling like Japan is as they have suffered great losses due to what has happened and they are heavily investing in there own back yards and there export have dropped ,so were is most the worlds raw materials coming from ?Aussie is one of the few economies the is still posting positive group and do so for a long time ,were does this leave the AUD ?