Australia is about to get whacked and for those foreign investors who have been blanked by this here is some light reading about what and who its about to affect.
This relates to households but business, in particular small business will be affected also.
Additional expenses could lead to job losses.
Lets not forget that this is purely political and under opposition Labor (left) who are ahead in the polls it will get worse as they are focusing on expensive renewable energy whereby Australia has abundance of coal and have by passed HELE power station technologies.
On 4 hour chart we are into a period of indecision since marked higher low so I then look to the daily chart - until we get a break of approx 8060 high or approx 7800 low it is not clear whether the move from 8060 to 7800 was a pullback or reversal. My bias is towards shorts given RBA warnings on the effect of too high an exchange rate and the size of the move up since June would support a bigger pullback (if not reversal). Need to be prepared for moves in either direction though as even if it is a reversal we may see retests of the high first.
I then also had a quick look at monthly chart and it could be that we are forming higher highs & higher lows there but even in that scenario it could easily be a move to 7500 for the next higher low. (I also don't think the US cycle of raising interest rates supports a long term bull cycle on AU).
