So i would go long at 0,9073, because i made use of the Currency Strenght or Weakness Ratio (CSOWR;
using Central Bank Interest Rate, GDP, CPI, Retail Sales, Employment and Trade Balance) showing that AUD
is stronger at the moment. Hence i assume more traders are willing to buy AUD. Furthermore we have an
uptrending market and i looked at the COT which conveys that net non-commercial positions are going to
shift causing a buy signal.
What do you think about my “analysis”? Any constructive criticism?
Oh that’s very easy. You just average the values. For example Australia March 2013:
Central Bank Interest Rate 2.5
GDP 0.8
CPI 1.2
Retail Sales 1.2
Core Retail Sales 1.2
Employment 47.3
Trade Balance 1.433
CSOWR 7.948
I’ve just avereged the 7 values.
The COSWR is a tool to measure the fundamental strenght of a country/currency.
Compared to the previous month the COSWR was 3.47. Hence more traders are willing
to buy AUD But that is assuming that the fundamental strength of the other currency
is weaker. I’ve found that method in a book but can’t remember the name. I will search
the book and tell you
Great post, I have been following AUD for awhile. Plus with the effects of the TPP I’m in the belief that the AUD will continue to strengthen over the long term. Might be a good time for a very long trade.
