There’s been a bit of press in the past 24 hours after the NAB’s global co-head of currency strategy Ray Attrill wrote in his morning note yesterday that “Glenn Stevens and Graeme Wheeler must be crying into their cornflakes” given the rally in the Aussie and Kiwi dollars.
But both men should be happier this morning after both currencies rallies failed overnight.
For the Aussie, the high yesterday was bang on the bottom of the downtrend channel that the Aussie fell through earlier this year. It’s the trendline that also acted as resistance on a retest of the break in January. So it’s a line that has form and traders are watching.
It’s also a line that just might have Glenn Stevens in a happier mood this morning.
Here’s the chart:
Off course it’s just a trendline, and there is no guarantee that the Aussie dollar doesn’t break back up and through resistance.
But for now there is subtle technical evidence the Aussie might have put in a short term high.