Market Update – USD AUD
The trend for a stronger AUD and weaker USD continues, albeit we have seen a slight correction over the last week. Traders have been spoiled with Aussie positive news flow, headed up by the recent interest rate hikes. The stock market correction last week helped the US dollar slightly, and dented enthusiasm for high yielders. Meanwhile though, the basic building blocks of this trend remain intact. Stocks are on the up again this week, and gold is hitting new all time highs on an almost daily basis, reaching $1,168 per ounce today.
In the absence of any market shocks we continue to advocate a stronger AUD and weaker USD. Right now the market is testing trend support, and as you can see from today’s chart we have usually managed to surge up to fresh highs shortly after testing the trend line. That is no guarantee that the same will happen this time, but to repeat last week’s update, “let the trend be your friend”.
Any opinions expressed in this document are those of TorFX
analysts. Any analysis and/or forecasts provided are aimed at
helping clients understand market conditions and developing trends.
Clients are wholly responsible for their own trading
decisions.
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