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Australian dollar bull run continues as technicals firm

au.investing.com/analysis/australian-dollar-bull-run-continues-as-technicals-firm-200545442
Australian dollar bull run continues as technicals firm
By David Llewellyn-Smith   |  Jan 24, 2023 12:19
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DXY has stopped falling for now:

 
DXY
DXY

AUD is now outpacing even EUR and JPY:

AUD
AUD

Commodities are the stuff of nightmares for central banks. If the soft landing transpires then oil will have bottomed at $80 and base metals at double “normal” cyclical lows. This is structural inflation in the making:

BRENT
BRENT

COPPER
COPPER

Miners (NYSE:RIO) are stalled for now:

RIO
RIO

EM (NYSE:EEM) is pouring it on:

EEM
EEM

Chasing junk (NYSE:HYG):

HYG
HYG

But the US rate easing has paused:

YIELDS
YIELDS

Even as stocks price above trends:

SPX
SPX

AUD technicals are still strong. Credit Suisse (SIX:CSGN):

AUDUSD has rebounded strongly from the recent breakout point at .6894/71

AUDUSD has rebounded strongly from the recent breakout point at .6894/71 as expected and with short-and medium-term momentum still rising and this key breakout holding, we stick with our bullish bias and look for further gains. Short-term resistance moves to the recent high at.7063, with more important resistance at an important cluster of retracement levels seen not far above at .7089/7138. A closing break above here would reinforce our bullish outlook further and open up the next key cluster of levels at .7284/7306. Only a stable close below the 200-day average at .6817wouldspeak in favor of a more neutral and choppy trading environment, with next support below seen at the 55-day average at .6768 and then at .6721. The Credit Suisse House View is neutral on AUDUSD on a 3-6month horizon. We stay bullish after support at .6894/74 held and look for a break above .7089/7138 next.

AUDUSD
AUDUSD

Looks well overbought to me but it’s not going to reverse unless or until the soft-landing thesis is challenged.

Australian dollar bull run continues as technicals firm
 

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Australian dollar bull run continues as technicals firm

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