2014 predictions: AUD/USD- pick the 20 big figure range

• Looking back over the years you will probably find that the AUD/USD tends to trade inside of a 20 big-figure range over the calendar year;
• Most of the AUD overbought values on the crosses has been unwound which will take off some of the downside pressure;
• The Australian economy continues to sputter along but the influx of Chinese money into the property sector will underpin the AUD/USD;

Now we have to try and pick the 2014 AUD/USD range. Any prices near .85 cents would be relatively ‘cheap’ in my view whereas rallies towards 1.05 are difficult to fathom at the moment. I’m tipping an exhaustive sell-off early in the year, perhaps even towards .84 cents, and from there we will rally back towards parity.

Prediction: .84/1.04