AUDUSD Surprises, Market Update

Happy New Year!   It is probably a little too late to be saying that but I have only returned yesterday from a 1 month holiday away in a few different places in Queensland.

It is always great to get away with the family and reset.


The index moved well to finish out last year and it has taken that momentum into the early stages of this year, before easing a little in the last week or so.  The recent high was close to a two year high which reflects how well the market has been performing.

With the index moving so well, it should come as no surprise that the all time highs / lows reading this week is 6 / 0.  There were 6 stocks in the top 500 that achieved new all time highs this week and the largest of those is AGL, and the cheapest Aust Finance Group (ASX Code: AFG).

As you would expect, the trading volume in the ASX to start this year has been quite low, relatively speaking.

Image from MetaStock


I have completely misread the Australian dollar.  I was reasonably confident that the key level at 0.75 would hold up again and place enough selling pressure on the AUDUSD.

It has surprised me that it has been able to move higher and maintain this level for the last few days pushing up towards 0.7580.  Even within the last week it pushed up against the 0.75 level without luck for several days, which reinforced how strong the resistance was around there.

It will be interesting to see whether it can rally again and move back to the next key level at 0.77, which provided stiff resistance for many months last year.

As I type this it is trading around 0.7574.