An interest rate is an interest rate and the lowest possible number offered daily by central banks. An exchange rate is a glorified interest rate under a different number. Both are the same numbers but must convert.
RBA Interest Rates today but only for today as interest rates change daily 0.08, 0.07, 0.06, 0.05, 0.04, 0.03, 0.02, 0.01 = Average 0.45 USD Interest Rates today but only for today as interest rates change daily. 0.11, 0.15, 0.19, 0.25, 0.31, 0.37, 0.41 and 0.44 = Average 0.27 Match AUD high at 0.08 to USD top at 0.44.
0.08 Vs 0.44, 0.07 Vs 0.41, 0.06 V 0.37, 0.05 Vs 0.31, 0.04 Vs 0.25, 0.03 Vs 0.19, 0.02 Vs 0.15 and 0.01 Vs 0.11. The Correlation is + 99%.
Match AUD highs from USD lows to highs. 0.08 Vs 0.11, 0.07 Vs 0.15, 0.06 Vs 0.19, 0.05 Vs 0.25, 0.04 Vs 0.31, 0.03 Vs 0.37, 0.02 to 0.41, 0.01 Vs 0.44.
The Correlation is – 0.99%. An exchange rate is born as AUD/USD. Match AUD interest rate highs to Exchange rates highs traded above respective points.
0.08 Vs 0.7724, 0.07 Vs 0.7719, 0.06 Vs 0.7714, 0.05 Vs 0.7709, 0.04 Vs 0.7704, 0.03 Vs 0.7699, 0.02 Vs 0.7694, 0.01 Vs 0.7689.
The Correlation is perfect at +1.0. Reveals each exchange rate point corresponds perfectly to the interest rate. Match interest rate to exchange rate opposite order.
0.08 Vs 0.7689, 0.07 Vs 0.7694, 0.06 vs 0.7699, 0.05 Vs 0.7704, 0.04 Vs 0.7709, 0.03 Vs 0.7714, 0.02 Vs 0.7719, 0.01 Vs 0.7724
The Correlation is perfect opposite at -1.0
Interest rates are drivers to exchange rates. Its impossible for interest rates not to drive exchange rates and all market prices.
Match interest Rate highs to AUD Lows
0.08 Vs 0.7646, 0.07 Vs 0.7650, 0.06 Vs 0.7655, 0.05 Vs 0.7660, 0.04 Vs 0.7665, 0.03 Vs 0.7667, 0.02 Vs 0.7670, 0.01 Vs 0.7673.
The Correlation is -0.99%.
Match interest rates from highs to Exchange rate highs in descending order
0.08 Vs 0.7673, 0.07 Vs 0.7670, 0.06 Vs 0.7667, 0.05 Vs 0.7665, 0.04 vs 0.7660, 0.03 Vs 0.7655, 0.02 Vs 0.7650, 0.01 Vs 0.7646
The Correlation is +0.99% and perfect.
Match USD interest rate highs to AUD Highs
0.44 vs 0.7673, 0.41 Vs 0.7670, 0.37 Vs 0.7667, 0.31 Vs 0.7665, 0.25 Vs 0.7660, 019 Vs 0.7655, 0.15 Vs 0.7650, 0.11 vs 0.7546. Correlation +0.99%
Match USD interest Rate lows to AUD highs 0.11 vs 0.7673, 0.15 Vs 0.7670, 0.19 Vs 0.7667, 0.25 Vs 0.7665, 0.31 Vs 0.7660, 0.37 Vs 0.7655, 0.41 Vs 0.7650, 0.44 Vs 0.7646
Correlation -0.99%
AUD achieves 0.7673 on USD 0.44.
Match USD interest rate highs to AUD Lows.
0.44 Vs 0.7646, 0.41 Vs 0.7650, 0.37 Vs 0.7655, 0.31 Vs 0.7660, 0.25 vs 0.7665, 0.19 Vs 0.7667, 0.15 vs 0.7670, 0.11 vs 0.7673
Correlation – 99%
Subtract AUD interest Rate highs from USD Lows
0.08 – 0.11 = 0.03, 0.07 -0.15 = 0.08, 0.06 – 0.19 = 0.13, 0.05 – 0.25 = 0.20, 0.04 – 0.31 = 0.27, 0.03 – 0.37 = 0.34, 0.02 – 0.41 = 0.39, 0.01 – 0.44 = 0.43.
Answers: 0.03, 0.08, 0.13, 0.20, 0.27, 0.34, 0.39 and 0.43 = 0.23
Subtract AUD Interest Rate highs from USD highs.
0.08 – 0.44 = 0.36, 0.07 – 0.41 = 0.34, 0.06 – 0.37 = 0.31, 0.05 – 0.31 = 0.26, 0.04 – 0.25 = 0.21, 0.03 – 0.19 = 0.16, 0.02 – 0.15 = 0.13, 0.01 – 0.11 = 0.10.
Answers: 0.36, 0.41, 0.34, 0.31, 0.26, 0.21, 0.16, 0.13, 0.10 = 0.25.
USD range 0.32 + AUD Range 0.07 = 0.39
USD Range 0.32 – AUD Range 0.07 = 0.25.
AUD/USD Exact Vital MA Points today: 0.45, 0.39, 0.27, 0.25, 0.23. Also 32 exists in the mix but not shown.
The main driver to today's day trade is 0.25 and AUD 0.05 or 0.7665. Tomorrow? Who knows. We deal with tomorrow when it comes as the only focus is day trades for today. However interest rates today don't change much from day to day in all nations.
AUD 10 year Yield.
Change RBA interest rates to an interest rate or as basis points because interest rates are offered as percentages.
0.08 = 1.08, 0.07 = 1.07, 0.06 =1.06, 0.05 = 1.05, 0.04 = 1.04, 0.03 = 1.03, 0.02 = 1.02, 0.01 = 1.01
Average = 1.04 and the 10 year yield closed today at 1.04 and down 0.034. The 2 year yield 0.08, The 3 year yield 0.11, The 5 year Yield 0.39 and 10 year yield 1.04.
In American Market trading, Australia markets are closed therefore AUD interest rates are fixed and set until the RBA offers a new set of interest rates.
The main point to this winding road is a currency price on any given day it trades is matched to an interest rate. Its a no lose system. The laugh to all this today is the abundance of information shown is not required to factor a day trade. Its actually very simple and takes a few minutes for each currency pair. Not only are targets and bottoms known in advance of the trade but Vital MA's and minor levels to achieve destinations.
Not shown was USD/AUD. Here's.
AUD/USD
Today, Good until 10:00 am EST. AUD/USD Most Important 0.7667 and 0.7673 Vs 0.7689, 0.7694, 0.7699, 0.7704, 0.7709, 0.7714, 0.7719 and 0.7724 Bottom 0.7646 achieves by 0.7665 and 0.7655 Upper target 0.7724 Continuation Fail 0.7704 Vital Break below for lower 0.7535
USD/AUD
Most Important 1.2955 and 1.2972 Vs 1.3020, 1.3028, 1.3036, 1.3045, 1.3053, 1.3061, 1.3069 and 1.3078 Bottom. 1.2946 achieves by 1.2979 and 1.2962 Upper target 1.3078 Continuation fail 1.3045 Vital Break 1.3289
Trading currencies and other financial instruments carries a degree of loss and possible loss of entire investments. Please managed your own risks, stop loss, and margins requirements.
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