AUD: The Hierarchy of Exchange Rates

The Hierarchy of exchange rates is permanent and never to change for AUD nor did AUD ever change in past years since the 1983 free float. The purpose is to allow each AUD currency to remain trading inside its own lane. More important is AUD must trade inside its own boundary in relation to EUR, GBP and every currency on the planet.

Last RBA meeting, OCR was raised and AUD/USD moved 30 pips. The 2016 market changes were designed for currency and market prices to not move by slashing ranges.

The focus for trade and profit purposes is the permanent numbers rather than the question to raise, lower or remain on hold. Rather than hawkish or dovish, yesterday’s news and promises to raise or lower OCR in the future. This is all BS and doesn’t profit but designed to change trader focus from numbers and profits to an assortment of non logical centers of attention. All the BS is found inside the permanent numbers.

AUD/NZD 54 pips, current 1.0888
AUD/CAD 46 pips, current 0.9159

AUD/JPY 46 pips, current 91.64
AUD/USD 34 pips, current 0.6747

AUD/EUR 32 pips, current 0.6328.
AUD/CHF 32 pips, current 0.6296

AUD/GBP 28 pips, current 0.5599.

RBA will trade the above permanent numbers or possibly permanent numbers X 2 but highly doubtful. After RBA and no matter to OCR or what the RBA says, AUD will trade the exact permanent numbers again. Next week and next years, AUD will trade the permanent numbers.

AUD/NZD Vs AUD/CAD. The reciprocal of AUD/NZD = AUD/CAD by 1 divide 1.0888 or 0.9184. The reciprocal of AUD/CAD = AUD/NZD or 1 divide 0.9159 – 1.0918. AUD/NZD permanent place is always above AUD/CAD.

AUD/JPY 91.64 Vs AUD/CAD 0.9159. AUD/JPY is shown and offered as a percentage while AUD/CAD is offered as a decimal. AUD/JPY aligns more permanent as AUD/JPY 0.9164 Vs AUD/CAD 0.9159.
AUD/USD as middle currency trades dead center to AUD/JPY 0.9164 Vs AUD/EUR 0.6327 or 2400 pips to AUD/JPY and 400 pips to AUD/EUR and AUD/CHF.

AUD/USD larger range is located from 0.9164 to AUD/EUR 0.6328. AUD/EUR and AUD/CHF are offered 32 pips Vs AUD/USD 34 to maintain permanent spaces and never to cross above or below.

AUD/GBP 28 Vs GBP/AUD 90 pips offered to 28 AUD/GBP pips inside GBP/AUD 90 or 62 GBP/AUD pips.

AUD/USD for RBA will trade 34 pips or if lucky 68 pips. More than 68 by a freak accident then free money is offered.

The entire AUD complex will move in a symphonic harmony for RBA as 7 trades. The entire AUD complex will move tomorrow in the same symphonic harmony.

Brian Twomey