The Aussie dollar has been stubbornly strong over the past few weeks and I suspect this is a sign of money spinning in Australia as China reopens. The outlook for coal, iron ore and base metals is improving with China back in the mix and the sidelining of the RBA will stabilize Australian housing.
The chart may look like a head and shoulders top to some, but I think the series of higher lows over the past two weeks is more telling. It will take a breakout of 0.6845 to confirm that, but there is a lot to like here.
Technically, it won’t be easy with the 200-day moving average, 0.7000 and the August highs nearby, but it’s a place to watch.