Aussie Continues to Steam Higher

AUDUSD continues to steam higher today ahead of this evening’s Australian Employment Change.   The Aussie has benefited greatly from both high interest rates relative to the rest of the G-7 countries, and from the low interest rate policies of those same partners.

With little to point to other then the possibility of a slow-down for China one of these years, Aussie bears have been caught out in the open for sure on the break out above the 2010 high at 102-57, as the asset class currency continues to prove a bug light for shorts who insist on paying the other side of that hefty yield.  On the bull side of the yard are Australia’s long-term demographics which grossly favor burgeoning consumer and investor classes for decades to come, compared to aging demographics for many of her trading partners.  And then there is momentum, which is perhaps the most critical element in market movement today. A body in motion – which also yields 4-3/4% not counting margin – tends to stay in motion.       

Jay Norris is host of The Daily Forex Report and the author of  the soon to be released Mastering Trade Selection & Management, McGraw-Hill, 2011.

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