Chart of the day: Aussie unbowed | South China Morning Post
  • Tue
  • Mar 31, 2015
  • Updated: 8:10pm
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PUBLISHED : Friday, 25 July, 2014, 12:25am
UPDATED : Friday, 25 July, 2014, 12:25am

Chart of the day: Aussie unbowed


Nicole Elliott is a technical analyst with 32 years experience of financial analysis working for some of the world’s biggest investment banks. Her key expertise is in foreign exchange, interest rate products, bullion, indices and commodities markets. Nicole is a regular TV commentator on financial markets and has authored books on technical analysis for financial professionals. She has a BSc from the London School of Economics.

The Australian dollar is making a clear push higher against the US dollar, regardless of the efforts of officials at the reserve bank who have tried to talk it down. Since April, the aussie has struggled against the 94-95 US cents resistance level. Volumes are now low, as they often are at this time of the year, and implied volatility has slumped, but sooner or later a push up to 96.2 US cents is on the cards. That would mark the recovery of half of last year's losses when worries about mining exports to China dominated. Note that the 50 and 200-day moving averages are supportive and ought to allow follow-through to the Fibonacci retracement resistance at 98.5 US cents.

Nicole Elliott is a technical analyst


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