Price has broken above long term trendline last friday,
and dipped to retest it this monday asia session amid weekend fed speakers.
to my experience, movements off weekend news on asian sessioins are usually corrective and cannot last long.
This provided a perfect long entry for AUDUSD.
Fundamentally Australia economy is also improving and monetary policy is switching toward more hawkish than before.
Many analysts has removed their expectation of further RBA cuts at least until Q1 2016, some of them even expect a rate hike before another cut.
Of course, expectations do not change overnight, it changes gradually and Aussie will rise gradually too.
Maybe a better long for Aussie is against EURO and NZD,
Euro has it's own problem as Draghi is notorious about over delivering easing plans, it may happen again on 3Dec ECB meeting.
Kiwi is also on the verge of another cut, probably in DEC RBNZ meeting.
Next RBA meeting is 1Dec, and they may talk about the strength of labor market and become more hawkish. Australia is transforming structurally from heavy weight in mining industry to a more serviced based economy which is good for AUD and long term Australia long term development. And also less dependent on China.
and dipped to retest it this monday asia session amid weekend fed speakers.
to my experience, movements off weekend news on asian sessioins are usually corrective and cannot last long.
This provided a perfect long entry for AUDUSD.
Fundamentally Australia economy is also improving and monetary policy is switching toward more hawkish than before.
Many analysts has removed their expectation of further RBA cuts at least until Q1 2016, some of them even expect a rate hike before another cut.
Of course, expectations do not change overnight, it changes gradually and Aussie will rise gradually too.
Maybe a better long for Aussie is against EURO and NZD,
Euro has it's own problem as Draghi is notorious about over delivering easing plans, it may happen again on 3Dec ECB meeting.
Kiwi is also on the verge of another cut, probably in DEC RBNZ meeting.
Next RBA meeting is 1Dec, and they may talk about the strength of labor market and become more hawkish. Australia is transforming structurally from heavy weight in mining industry to a more serviced based economy which is good for AUD and long term Australia long term development. And also less dependent on China.
