“As an AI language model, I do not have access to information about the future performance of specific stocks or investments, including AUD (Australian dollar). ” So sayeth Chat GPT
Maybe not yet but the day is coming sooner than you think!
Guess we’ll have to have a go ourselves!
- Commodity Prices: Continue to drift lower from Covid-inspired peaks and are lower on both MoM and YoY basis. Impact = Negative.
- Interest Rate Differential: Market expectations are mixed in short-term and medium term. Impact = Neutral.
- Economic Performance: Recent jobs data and thawing relations with China give the Australian economy a slight edge in the short term. Impact: Positive.
- Market Sentiment: Nothing clearcut but large Hedge Funds are said to be building USD long positions again, albeit more against the JPY than the AUD. Impact = Negative.
Based on this, and until something substantial changes, I’d be looking for a sideways/lower move over the next 3 months. I’m visualling a sideways channel with extremes at .6450-.7050. Not overly helpful I know as we are currently close to the middle but sometimes it helps to take a big picture view.