On a 15 minute candle bar chart, its spend about 5 hours over 70% in the RSI index, ranging from when Chinese CPI was released (which marginally beat expectations), to this very moment. With Yellens speech coming, and the Iron ore rally being suspect in his ability to hold, who is bidding the AUD to these levels?
Even long term, by the end of the year, its within reason to believe AUD and USD interest rates will reach parity at 1%. There is so much risk in the AUD at this level. Namely interest rates risk, potential credit downgrade, commodity risk, the risk premium on Trump's trade & economic policies.
My only thought, is investors are speculating the RBA will alter monetary policy and wont heed another rate cut based on improving economic conditions in both Australia and China, and the RBA not wanting to fuel what many believe is a housing bubble in Sydney and Melbourne by cutting interest rates further.
Boom!! As I type, is just bounced of the high trend line of 76850 to fall through the intra day resistance level of 76745.
Even long term, by the end of the year, its within reason to believe AUD and USD interest rates will reach parity at 1%. There is so much risk in the AUD at this level. Namely interest rates risk, potential credit downgrade, commodity risk, the risk premium on Trump's trade & economic policies.
My only thought, is investors are speculating the RBA will alter monetary policy and wont heed another rate cut based on improving economic conditions in both Australia and China, and the RBA not wanting to fuel what many believe is a housing bubble in Sydney and Melbourne by cutting interest rates further.
Boom!! As I type, is just bounced of the high trend line of 76850 to fall through the intra day resistance level of 76745.