This overlay of AUDUSD, CSI 300 and China A50 shows high positive correlation among the three from beginning February 2016 recovery.
- Bullish China stock market is also bullish for AUDUSD (commodity exports to China).
- A divergence in one of the three could be meaningful indication of potential turning point.
- Long as this correlation stays intact, weakening CSI 300 and/or China A50 will introduce weakness to AUDUSD also.
Director, TerraSeeds Market Technician Pte Ltd. Trader, investor. @sohtionghum was picked ‘Top 70 Forex Twitter in 2015’. Operates multiple strategies.
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