Aussie Dollar "The Next Dollar To A Hundred"

     The RBA has a lot of fundamental news out this week with three real major ones. Here is a list of next weeks economic reports coming out.

June 30th Private Sector Credit Month on Month and Year on Year

July 1st    RBA Interest Rate Decision (7.25%) and RBA commodity Index **

July 2nd   Building Permits Month on Month and Year on Year and Retail Sales **

July 3rd    Trade Balance *

     For the most volatile days will be the ones marked with a red asterisk. Fundamentally, may see a retracement of Friday's gains on Monday. I would expect the RBA to keep interests rate unchanged or even raise a quarter percent do to inflationary problems. Most analysts are mixed going into August though some are saying a quarter percent hike and others are looking for a quarter percent cut. With interest rates staying untouched, private sector credit increasing, building permits and retail sales on the rise you would probably see the Aussie Dollar reach new contract highs and reach a hundred by July's end.

     Technically the Aussie Dollar should see a retracement to 9365 but if the fundamentals play into its bullish favor you will see the Aussie break right back into the 3 month channel. We have a lot of support at 9365 and with Fridays close equaling the same as June 6th at 9512 that will be our first resistance. It also has closed 9 out of 11 days higher than the previous high. Strong bullish sentiment.

     Being bullish on the Aussie Dollar I am looking to enter a bull call spread. Buying the September 9600 call and selling the September 9900 call for $900.00 or better. Or buy the straight 9800 call for $660.00 the only problem is you have no down side protection on a highly volatile fundamental week. If the Aussie Dollar breaks major support at 9365 we will exit trade.

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