I am actually looking for long signal. Yes, I am waiting to go long. We are waiting to see how does RBA react now. Do they still think that the stimulus package is going to do any good?
Well , it is understandable why were they so confident about the stimulus package. During the Asian crisis, around 1997 to 1999 , Australia managed to grow at an average rate of 4.7%. The country’s sound foundation of strong domestic consumption was able to save Australia from past crises. Consumer consumption was the key.
They still believe in this. I guess.
Anyway, I don’t believe in what they choose to believe. But I am looking to long Aussie dollar now.
Here is the….CHART! (Click to view full chart)