Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
AUD/USD: pointing to the upside?
Information is not investment advice
In the mid-term, AUD/USD has been oscillating around 0.73 in the channel between 0.7340 and 0.7220.
In the long-term, AUD/USD is at the highest level range it’s been at for the last two years, but the way to those levels has been full of battles – as it still is.
In the very long-term, 0.74 opens the way to the Fall-2017 highs of 0.81. After that, there is the entire mountain of the heights gradually left as the years were going by since the crisis of 2010.
Now, what is it going to be? Tactics make a strategy. And the tactical view suggests the following.
First, Victoria’s lockdown is lifted. In an immediate response to that, the October employment in Australia soared. The AUD saw that and got happy with it.
Second, the Reserve Bank of Australia injected more quantitative easing and made the bank lending facility rate 0.1%. That also provided more optimist to the Australian dollar in the long-run, even with it’s local depreciation at times, and drove it upwards.
On the other side, there is China. No, not that China that saw president Xi Jinping pay a prestigious visit to Australia and signed free-trade agreement later on. But China that sees Australia as largely a cold-war-mentality state that led the relationship between the two countries into the current stalemate. On this front, things don’t appear as optimistic as they do on the domestic front in Australia. Therefore, we have to factor in a heavy upside resistance before projecting further gains of AUD/USD in the mid-term.
Inflation in New Zealand is the highest since 1990, edging to 7.3% in Q2 2022. The currency is under heavy pressure as the Reserve Bank of New Zealand is trying to reverse the inflationary spiral. The week ahead will give us a valuable clue about the country’s monetary policy, and we are here to talk about that.
In the middle of September 2022, the Canadian dollar has fallen to a 2-year low against the USD.
The US dollar index has all chances of reaching the 2000s high of 120.00.