Australian Dollar Cross Pick 02.15.2012
As the USD/CAD maintains the narrow range from earlier this month, I will be keeping an even closer eye on the AUD/NZD over the remainder of the week as it slips to a fresh yearly low of 1.2790. Although the AUD/NZD cleared 1.2800, I am going to wait until we get a close below this level, and we may see the kiwi continue to outperform against the aussie as the fundamental outlook for New Zealand improves. As the pair remains stuck within a downward trending channel, I am waiting to sell the pair close to the upper bounds around the 38.2% Fib from the 2011 high to low (1.2880-1.2900), and will look for a run at the 23.6% Fib around 1.2650-60.
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