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:
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.
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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