AUD/USD and AUD/CAD: Levels, Ranges, Targets

AUD/USD. Bottoms 0.7102 and 0.7084. Vital point breaks 0.7149 and 0.7134. 50 day average 0.7060. Buy prices below 0.7068 and 0.7044. Watch 0.6947 on worst case based on RBA Tuesday. Above sell points are found at 0.7306 and 0.7313. Best target 0.7253.

Range points 0.7096, 0.7143 and 0.7265. Note points 0.7134, 0.7143 and 0.7149 as tough clustered area. Total range 17 pips. Vital points to watch for the next day or two, 0.7134, 0.7142, 0.7150, 0.7161, 0.7173, 0.7190.

AUD/CAD. Vital points from 0.9632 close. 0.9525 below, and 0.9794 and 0.9827 above. 253 day average 0.9627. AUD/CAD is way oversold, AUD/USD is okay not overbought or oversold but AUD/CAD could assist AUD/USD higher. Both pairs better to sell rallies. AUD/CAD Trend is positive at 5 day MA, 50, 100 and 200 but negative from 10 and 20.

RBA Tuesday. Should hear usual story, AUD to high, commodity prices should see AUD much lower, 0.6500 was mentioned last week as good level. Listen close to Australia’s main economic problem Import and Export prices, both for the past year or so are severely misaligned. In the statement they will use words as Trade Ables V Non Trade Ables. Its another reason why AUD has been pretty much in ranges and why RBA wants AUD lower. They want a lower AUD to assist Exports. Inflation is not a concern. Listen to Labor messages for layoffs. Housing should be good as the recent adoption of 20% down payments assisted to cool off the overheated Housing market. Now its stabilizing.

Brian Twomey, Inside the Currency Market, btwomey.com