Good morning SG & thanks for your latest post. I do understand what you are saying. And you are more aware than I regarding relationships between what I consider to be the minor pairs. A/J for example. And I don't have the time to study/trade these pairs. Have enough trouble keeping up with the U.S. dollar stuff.
Dog gone, I dumped my A/U a little to early.
We agree on the XAU bottom being in. I hope that it is correct, because I am like 90% in PM's at this time in the equity's.
Size of the economy = population when educational levels are roughly equal. The larger more diverse economy can absorb the swings better = less short/mid term volatility. The AUD seems to be a one trick pony, thus the bigger swings.
A little research this morning regarding COAL. China imports 40% of it's coal from the aussie's. Demand in china for coal is still increasing, BUT the U.S. and Russia is now supplying a much bigger chunk of China's coal demand. Fracking in the U.S. has opened up huge new natural gas supplies. Replacing coal fired generators, thus reducing U.S. domestic demand, thus opening up supply to sell to china at CHEAPER prices, thus cutting in to Aussie's exports.
Just one example.
Books can be written on the stuff we are talking about here. But what little that can be passed back & forth on this board may help all of us be better traders.
SG I really do appreciate the effort that you have put into your supertunnel. It has added a new & successfull tool to my trading perspective. Thanks for shareing.
