Today’s inflation print is sending the Australian dollar higher against, well everything, almost shooting above the 71 cent level versus USD in the short term for a new weekly high:
As it tries to get out of the oversold position from the end of last year in a very fast – perhaps too fast – reconciliation. However, the weekly downtrend since COVID remains intact, so don’t get too excited by the usual Twitterati “market” economists:
Against Kiwi its now nearly 10% above parity (time for a holiday?) with the cross in a similar position but different dynamics across the ditch as NZ housing crashes:
Against the major pairs, the Aussie is now in its second stage boost against Pound Sterling after a clear break of the bearish wedge at the end of last year, but still well off the 2022 nadir:
While against Euro is a bit more temperate, with a retracement back to the weekly support level at the 1.52 handle on the EURAUD cross, although stepping back this weekly chart does look like a very bullish inverted head and shoulders:
The February RBA meeting is live and kicking!