Again, the AUDUSD has formed a new low. Will history repeat itself again and will the AUDUSD bounce again strongly? If you look at the charts you will see that this particular price level, which is nearing 0.9000, meaning it is 90 cents to the US dollar, has been a very strong support level for the AUDUSD.
In fact, personal acquaintances of mine had been advised by many green "financial advisers" from the banks to exchange their Ringgit for the Aussie dollar, as "It is at historical lows". This person was cursing them when he was telling me this story, as he had done so to support his children's education in Australia.
Guess what, the AUD has now broken the 0.9000 level to the US dollar, and is now trading at approximately 88 to 90cents to the US dollar. Commercial hedgers may now have joined the fray by coming in to hedge their currency risk, largely from the import-export sectors.
Of course, the RBA's strength is no match for the Federal Reserve, but does Ben Bernanke still have any reason to continue the Quantitative Easing?? To be on the safe side, I will continue shorting this currency at all new highs.
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