I Still Think AUD Is Going Higher

In the “mean reverting” and wonderfully trending asset class of currencies, the Australian Dollar (versus the USD) has now reverted to its medium term mean of 0.6848 (as measured on a weekly basis).

Unlike the previous declines seen in the chart below, which commence from the upper end of the shadowed bands (measured as 2 standard deviations above its then rolling mean)………my work or analysis suggests that the AUD soon resumes its recent rising trend, now that its performed a little retracement.

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