AUD: How high can the currency down under go?

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The Australian dollar reached new highs and seems more confident above 0.80. Where next? Is the bull trend in tact?

Here is their view, courtesy of eFXnews:

AUD/USD: Allow For S/T Selling Before Resuming Of Core Bull Trend: Levels & Targets – Credit Suisse

Credit Suisse FX Technical Strategy Research notes that AUD/USD has held uptrend and price support at .7866 before breaking above the July high of .8067 and settling around there.

We allow for fresh selling here, but favor a break above to reinstate the core bull trend for .8163/67 initially, and eventually our core target of .8453/83,

On the downside, CS argues that a removal of support .7866 would complete a small top to target .7807 en-route to the  the medium-term base at .7696.

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AUD: Time To Price In RBA More Aggressive?; What’s The Trade? – Nordea

Nordea FX Strategy Research argues that an observation from historical patterns suggest that we should be warming up for a tightening of the stance from RBA.

“It is not rare to see RBA move in the aftermath of a turn from the Bank of Canada. Based on data from the last 40 years, RBA moves roughly 2-3 months after BoC on average. With recent solid employment signals from Australia, it could be time for the market to price RBA more aggressively for Q1-2018.

And as long as industrial metals see trend-wise tailwinds, AUD should be underpinned. Thus far AUD/USD has been undershooting the recent pick-up in industrial metals. At the moment we consider long AUD/JPY as the perfect “no nuclear wasteland” trade.

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Yohay Elam – Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.

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