Chart of the day: Aussie unbowed

PUBLISHED : Friday, 25 July, 2014, 12:25am
UPDATED : Friday, 25 July, 2014, 12:25am

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