The ACD Method

I use 2am central time.

 

You can watch the EUR/AUD pair to track the correlation.

 

You have mentioned AUD tracks commodities. Can you explain this?

 

Oil much weaker then other risk assets today after the near touch of $100 a barrel last night. As expected, that area got rejected very fast. If we go back through it, I don't think it will stop.

 

The Aussie, loony, south African rand, and Brazil are known as commodity currencies since their economies are highly natural resource dependent. Aussie probably being the most popular and most widely followed.

Here is the official definition.


http://en.wikipedia.org/wiki/Commodity_currency

A commodity currency is a name given to currencies of countries which depend heavily on the export of certain raw materials for income. These countries are typically developing countries, eg. countries like Burundi, Tanzania, Papua New Guinea; but also include developed countries like Canada and Australia.

In the foreign exchange market, commodity currencies generally refer to the Australian dollar, Canadian dollar, New Zealand dollar, Norwegian krone, South African rand, Brazilian real, and the Chilean peso.

 

I think copper plays a role in that currency.

 

Thanks.

 

AMZN takes off! Confirmed A up on the daily. Very nice action today. Monthly A up is 226.50.

 

VMW confirmed A up and blew through the monthly A up at 102. Looking to confirm today. Intra-day A up at 101.77.

 

ya saw that today...nice breakout. Tech names hanging in there....AAPL not so much at this point.