RBA Minutes Turn Hawkish On News That the AUD/USD Had Moved Higher

news.goldseek.com / By Mike Golembesky / Thursday, 20 July 2017

I have written several articles discussing my long term prospects for the Australian Dollar against the US Dollar over the past 6 months. In February I had written that there was likely a multi-year low in place on the AUD/USD, and then on May 2nd I followed up writing that there was now a longer term trade setup in place on the AUD/USD.

At the time of the May article the Australian Dollar was trading at 0.7550 against the US Dollar and I had noted that:

“From a trading perspective, this current pattern is providing us with a fairly clean long setup around current levels with stops just under the 0.7159 zone. Targets for this longer term trade setup come in at the 0.8372-0.8593 zone.”

On May 9^th the AUD/USD bottomed at 0.7328 and as of July 19th is trading 8% higher off of that May low.

The AUD/USD has now strongly broken through several price levels that have now given us the initial signals that the pair is indeed following through on this longer term trade setup that had been laid out back in May.

I have also recently written several articles discussing how the pundits seem to always find some exogenous news item to explain the price movements in the financial instrument in which they are reporting on. Often times the connection between this exogenous event and the financial instrument is suspect, and other times it’s just down right absurd.