AUD/USD and RBA Decision

Johan Gustaf Knut Wicksell passed May 1926 yet 90 years later, the Dean of traded markets will never die as long as markets and particularly exchange rates trade. Yet even in a Gold or Fixed exchanged rate system, Wicksell's impact remains supreme as number one and any number two comparison a far distant second. Wicksell' s influence is felt the world over in as much as a traded market price but central banks the world over designed their systems based on the genius of Wicksell. Based on Wicksell, the RBA decision was OCR slated for a cut April 27th as markets signal loud and clear. 

Generally and historically since the 1983 free float, AUD normalizes in OCR raises and cuts maximum 5 days. Its a system specific to AUD yet it serves NZD as well. What 5 day normalizations mean is the best volatility is seen maximum 5 days after an OCR rise or fall. AUD is the pair to trade all week. Correlations to EUR/USD run 94% and solidly in the EUR/USD orbit. 

Glenn Stevens again reiterated his desire to lower AUD. The AUD price is currently on the floor yet every time most respected Stevens speaks to lower AUD, it rises. Big bottoms in AUD are found today at 0.7064, 0.6979, 0.6977, 0.6913. How much changes in days ahead, a few pips to the bottom prices and that includes old and new OCR rates. 

Stevens again spoke to terms of trade. Without the full review to this issue but knowing AUD, Import and Export prices must be severely misaligned otherwise the issue would've remained silent in the statement. 

What governs the AUD system is the relationship inside a uniqely designed CPI as Trade Ables and Non Tradables. Trade Ables and Non Tradeables is the difference betwen services and production and its quantified and influences not only Import and Export prices but its a deep insight to AUD exchange rates. If production is off kilter then trade suffers and in turn the AUD price to offer a generalized view. 

AUD exports predominately ship as SDR/AUD. AUD SDR's currently price to 0.5344, down from April 29th at 0.5401, 0.5387 April 28th and 0.5412 April 27th. A lower AUD then lowers SDR and allows AUD to ship goods again for profits but it also straightens any disfunctions between Import and Export Prices as well as Trade Ables and Non. Overall, this raises CPI to acceptable levels. AUD is never the cause of crisis but is subject to the vagaries of world problems. 

AUD/USD. Bottom. 0.7521. Watch future bottoms 0.7509, 0.7508, 0.7500, 0.7491. Ranges above 0.7609, 0.7785, wide. Below ranges 0.7508, 0.7338, 0.7231, more wide ranges. Target above 0.7583, Failure point 0.7576. Reversal points 0.7561 and 0.7563. Points on the way up, 0.7562, 0.7564, 0.7568, 0.7571, 0.7575, 0.7579, 0.7583 Target.
Shorts below 0.7557, Target 0.7539, 0.7521 Bottom. Both must cross higher today to head back long. Watch 0.7491 as alternative bottom. Vital levels on the way down, 0.7550, 0.7548, 0.7546, 0.7544,0.7540.