Quote:
Originally Posted by manzanofab
Hi, can anyone explain me why if the US economy is going so bad why the us dollar is winning terrain against all the currency?
is a econmy of a country goes wrong usually the coin of that country goes down right? why this case is an exception??
there where any technical signal for the big 3500 pips down of the pair AUD/USD?
thanks
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the large fall in the aud was largely due to the unwinding of carry trades esp Large drop in aud interest rates. All other economy's rely on US consumer. A relatively small drop in US consumer spending often will not impact other economy's But a huge drop like we have now sends everyone down the toilet. Anyone looking at cot data would have seen the huge drop in long positions by large speculators on 29 july, it was all south from here. RSI was good for confirmation + exit point. Although aud/usd has made gains at 70500 today I dont think the medium term outlook is good Interest rates will probably continue downward and the countries heavy reliance on mineral/energy exports suffer. Then again I have been wrong before and its a pretty good bet that I will be again at some point in the future.