Aussie Disconnecting With Economy in 5% Plunge: Market Reversal
From bloomberg.com
Australia’s growing economy will put a floor under the nation’s currency, sparking a rebound from its steepest decline in a year, trading patterns suggest. The Australian dollar’s 4.6 percent slide this month cut its 14-day relative strength index to 25, breaching the 30 threshold that signals a currency has fallen too far, too fast. The so-called Aussie also pushed through the lower limit of what traders call the Bollinger band, implying an imminent reversal. The currency started tumbling amid a slowdown in China, the biggest customer for Australia’s commodity exports, and interest-rate cuts aimed at maintaining the ...
(full story)