Chart of the day: Aussie joins the party
Last week, the IMF warned of the danger to emerging markets of debt overhang and weak commodities - and currencies affected by these issues promptly saw one of their most impressive weekly gains. The Indonesian rupiah led the pack with a 9.3 per cent gain, with a little help from central bank intervention. Like the New Zealand dollar, the Australian dollar decided to join the party. A cluster of secular support levels between 71 and 72.75 US cents aided the rally, as they did in 2009, lifting the RSI off oversold levels and switching the parabolic stop-and-reverse to bullish. A break of trend line resistance at 74 US cents should see a squeeze to 75, maybe 77.