{"id":12659,"date":"2012-07-08T23:19:12","date_gmt":"2012-07-09T03:19:12","guid":{"rendered":"http:\/\/drduru.com\/onetwentytwo\/?p=12659"},"modified":"2012-07-08T23:19:12","modified_gmt":"2012-07-09T03:19:12","slug":"australian-dollar-confirms-rally","status":"publish","type":"post","link":"https:\/\/drduru.com\/onetwentytwo\/2012\/07\/08\/australian-dollar-confirms-rally\/","title":{"rendered":"Australian Dollar Confirms Stock Rally As It Re-Emerges As A Leading ‘Risk-On’ Currency"},"content":{"rendered":"

(This is an excerpt from an article I originally published on Seeking Alpha on July 6, 2012. Click here to read the entire piece<\/a>.)<\/strong><\/p>\n

The Australian dollar’s year-to-date performance against the U.S. dollar (FXA) is back to even. The leading “risk-on” currency has fought back from a large one month slide that featured losses of as much as 8.5%. It was also a time when the economic data seemed to confirm a weakening Australian economy. The numbers since the recent bottom now seem to indicate that the economy is just fine. Indeed, in its latest monetary policy decision<\/a>, the Reserve Bank of Australia (RBA) seemed much more concerned about macro-economic forces beyond its borders than domestic developments {snip}.<\/p>\n

{snip}<\/p>\n


\n
\"The<\/a>
The Aussie is even again with the USD for the year<\/figcaption><\/figure>
\n
\n
\"The<\/a>
The Aussie is actually out-performing its fellow commodity-heavy cousin the Loonie (the Canadian dollar)<\/figcaption><\/figure>
\n
\n
\"The<\/a>
The Australian dollar is again up for the year against the Japanese yen and looks ready to breakout<\/figcaption><\/figure>
\n
\n
\"The<\/a>
The New Zealand dollar is still out-performing the Aussie for the year<\/figcaption><\/figure>
\n
\n
\"The<\/a>
The euro is of course a big loser for the year and the Aussie is back to its best 2012 levels against the hapless currency<\/figcaption><\/figure>
\n
\n
\"Dreams<\/a>
Dreams of being a safety currency are long gone as the British pound has slid fast and hard against the Aussie<\/figcaption><\/figure>
\n<\/center><\/p>\n

At the same time the Australian dollar has come roaring back, it has maintained the near perfect correlation it re-achieved with the S&P 500 (SPY) in May after three months of divergence (for an example, see this article from late May: “Correlations Are Broken But Australian Dollar Still Leads The S&P 500<\/a>“). Thus, the Australian dollar in a sense is confirming the S&P 500’s comeback from the June low. I continue to look for divergences that could flag an imminent change in the nature of the stock market’s rally.<\/p>\n

{snip}<\/p>\n

Be careful out there!<\/p>\n

(This is an excerpt from an article I originally published on Seeking Alpha on July 6, 2012. Click here to read the entire piece<\/a>.)<\/strong><\/p>\n

Full disclosure: net short Australian dollar<\/p>\n","protected":false},"excerpt":{"rendered":"

(This is an excerpt from an article I originally published on Seeking Alpha on July 6, 2012. Click here to read the entire piece.) The Australian dollar’s year-to-date performance against the U.S. dollar (FXA) is back to even. The leading “risk-on” currency has fought back from a large one month slide that featured losses of … Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[386,4,20,62],"tags":[994,772,995,308,996,309,592,203,1597],"class_list":["post-12659","post","type-post","status-publish","format-standard","hentry","category-australia","category-china","category-forex","category-technical-analysis","tag-audcad","tag-audjpy","tag-audnzd","tag-audusd","tag-euraud","tag-fxa","tag-gbpaud","tag-reserve-bank-of-australia","tag-technical-analysis"],"yoast_head":"\nAustralian Dollar Confirms Stock Rally As It Re-Emerges As A Leading 'Risk-On' Currency - ONE-TWENTY TWO: Trading Financial Markets<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/drduru.com\/onetwentytwo\/2012\/07\/08\/australian-dollar-confirms-rally\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Australian Dollar Confirms Stock Rally As It Re-Emerges As A Leading 'Risk-On' Currency - ONE-TWENTY TWO: Trading Financial Markets\" \/>\n<meta property=\"og:description\" content=\"(This is an excerpt from an article I originally published on Seeking Alpha on July 6, 2012. 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