Aussie vs Canadian Loonie is nearly Oversold

A Weekly Oversold reading in the AUD/CAD signals a reasonable buying opportunity in the ASX 200

One hiccup occurred in September 2018 denoted by the red vertical line.

The AUD/CAD isn’t Oversold at the moment, nor is the ASX 200

October 17, 2022

by Rob Zdravevski

rob@karriasset.com.au

Currencies are in focus again

I’m watching currencies a little more closely this week and their subsequent relationship to commodity prices.

Currently, the Canadian Dollar (vs the USD) is registering an Overbought extreme not seen since September 2017 and again in April of 2011.

Furthermore, the AUD/USD (0.7730) is showing trending signs of moving lower.

Today, the AUD/JPY (84.53) has posted a bearish outside reversal day.

Should the 2 latter currencies confirm their new downtrends, expect to see lower commodity prices.

The consensus and herd are all long commodities at the moment and not many think they can go lower.

An unwinding of some historically ‘long’ contract positions being seen in the futures markets could turn ugly, especially if the Loonie (CAD) trades below 0.7950.

May 6, 2021

by Rob Zdravevski

rob@karriasset.com.au

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