Simple's Green Room

[pennies2007]

It can definitely be a pain in the rear, Kirby. AU is a commodity based pair, so it follows things like oil and gold. If either of those is moving up, AU will move up with it.

AU has moved up primarily because of the big pop in oil. But there are multiple signs now that it's been too much too soon and needs to cool off now.

You'll find that AU also relies heavily on China. China is a major importer of their mining goods so if China is struggling, AU isn't happy. There's been headlines popping up the last few days about China's debt problem and that may be the nail in the coffin for AU and for commodities in general.