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.
- 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.
“Dear reader, I do not have a financial license to give advice. I do not know you the reader. Your financial objective and risk tolerance may be different from mine. I am not responsible for any consequence of your action.