Strategist: Aussie Is Ready to Rise
Todd Gordon, founder of TradingAnalysis.com, has been watching the Australian dollar for some time, and he thinks the stars are finally aligning and it is ready to move higher.
Gordon says the 1.0600 level has been containing the topside, so that every time the Aussie approaches that level, investors start selling. But overnight, Australia will report its fourth-quarter inflation, and the following night, the HSBC flash PMI for China will be released, which Gordon expects to be more reliable than Chinese government figures.
"Some good readings there would solidify a non-rate cut" from Australia's central bank in February, he told CNBC's Scott Wapner. And since investors are expecting a cut, and the resulting downward pressure on the Australian dollar, "that will push us up through the 1.0600 level."
So Gordon wants to buy the Australian dollar once it breaks through that key 1.0600 level against the dollar. When it does, he recommends setting a stop at 1.0500 and looking for a move to 1.0900.
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