Just as last year finished, so this year has begun, with strong commodity demand and growth in China/India being two of the major factors in the market. This of course spells increased demand for commodity currencies, with the AUD leading the way. It looks now like we may be ready to challenge 1.00 sometime in the first quarter. I know I’ve been saying for some time that I think the AUD is overvalued but it simply refuses to go down and despite many setbacks, it is only 150 pips off its recent highs and strong support levels keep emerging (.9170 being the latest).
Resistance on the day is at .9280 and .9290 but my hourly charts are turning quite bullish so buying dips looks like the safer bet.
Good luck today.
