Since forex traders generally try and find the strongest trend in the market and then fade it, anticipating an imminent collapse, AUD/USD has done nothing but stop out the skeptics.
As Sean wrote overnight, there were stops above the 87.00 level and they have been taken out this afternoon as the dollar and commodity double-helix remains intertwined. The lower the dollar goes, the higher commodities go. The better the US data, the higher the odds of a global recovery. The higher the odds of a global recovery, the better for China. The better for China, the better for Australia, a key supplier of natural resources…And on and on it goes…
0.8680 is support on pullbacks near-term for the AUD while 0.8805 is next resistance, a top dating back to this time a year ago.
