Long AUDUSD sound as long as China stock indices are up

This overlay of AUDUSD, CSI 300 and China A50 shows high positive correlation among the three from beginning February 2016 recovery.

  1. Bullish China stock market is also bullish for AUDUSD (commodity exports to China).
  2. A divergence in one of the three could be meaningful indication of potential turning point.
  3. Long as this correlation stays intact, weakening CSI 300 and/or China A50 will introduce weakness to AUDUSD also.
Overlay AUDUSD, CSI300 and China A50 showing positive correlation from beginning Feb '16 to present

Overlay AUDUSD, CSI300 and China A50 showing positive correlation from beginning Feb ’16 to present | Source: Investing.com

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Soh Tiong Hum is Director of TerraSeeds Market Technician Pte Ltd. TerraSeeds is a trading educator in Singapore since 2005.   Soh's Twitter account @sohtionghum was ranked #23 out of The Top 70 Twitter Accounts To Follow In 2015 by MahiFX.   Disclaimer notice: "I do not have a financial advisor's license. I am not qualified by any regulator to give financial advice. I do not know you the reader. Your investment means and motive may be different from me. My posts here are based on observations and meant for education. I am not responsible for for any consequence from your actions."
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