Because we’re entering what is historically one of the quietest periods for markets, we’ll be taking the opportunity to take a longer-term view of many major FX pairs and markets over the next two weeks, starting with AUD/USD today.
An inconclusive election result that may increase unease over Spain's financial stability did little to weaken the euro on Monday, while China's yuan was fixed stronger by authorities for the first time in two weeks.
The weekly AUD/USD chart (below) looks stronger than it has at any point in the last year. As of writing, the rates are breaking above a 14-month bearish trend line near .7200 and approaching a three-month high around the .7400 handle. Meanwhile, the weekly RSI and MACD indicators have both turned higher to hit their highest levels in over a year.