Thursday, January 29, 2009

AUD EURO 10 year chart

this morning someone in Australia arrived at this post via the following search query:

AUD EURO 10 year chart

but that post does not even have a chart on it, let alone one going back 10 years. I think this chart may be more what you are looking for:

(click here for updating version)

the chart measures the Euro relative to the Australian Dollar. the higher the ratio, the more valuable is EUR relative to AUD. so AUD really got clobbered last fall, didn't it? but since October the pair has formed a fairly broad, yet defined trading range, and you can see on the graph below that for the last few weeks EUR/AUD has traded right in the middle of that range. I keep thinking the rate will go down, meaning AUD strengthening, but so far it just keep wiggling back and forth. but the eventual break out of the recent range, whether that is up or down, should be relatively easy for a currency trader to exploit.