Disliked{quote} Hi. What is the rationale behind this move? The odds have increased recently for RBA making another cut in a fortnight with Westpac increasing its home loan rates yesterday. So far RBA has been reluctant to cut rates due to booming property prices. The banks might have just given RBA some breathing space to now continue with easing monetary policy further. Employment figures released today don't seem to be good either. So I would like to understand why you think AUD would go as high as 75c as fundamentals show a different picture.Ignored
Why did it go to .7380? Technical move... oversold market.
It's only a 600 pip correction! Why do people act like that is so significant??
I never said the downtrend was over, it's just by my technical analysis we have put in a major bottom.
The last time we had a double bottom on the weekly chart we rallied 650 pips (in April/May)
Aussie has a tiny population. It's not really about the fundamentals or jobs data, it's about the Central Bank rate.
That's what drives the buying.
2% yield is still quite good. Even if Aussie goes to 65cents that would be the final bottom (by my technical analysis)
and it would probably correct back into 80cents in 2016.
It's just hard for me to trade against the monthly candle.
Be hopeful in a winning position, and fearful in a losing position.