AUDNOK Breaks The ChannelThe recent AUDNOK breakout trade idea has hit its first target at 6.4202. With MACD and RSI firmly bullish here, the focus remains on the bigger target at 6.5046.Despite the broader wave of risk aversion we’ve seen, AUD has benefitted against NOK firstly as a result of softer oil prices this week and secondly, in response to better-than-expected Aussie CPI data. Aussie CPI came in at 1.3% for the last quarter, marking an increase on the prior quarter’s 0.8% reading and a beat on the 1% reading forecast. There are now upside risks heading into the next RBA meeting with some forecasting that the bank might announce an end to QE, which would be firmly bullish for AUD near term.Keep An Eye OnRisk flows and the FOMC will be the key aspects to monitor this week for AUDNOK. Under the current conditions, AUDNOK is on course to hit the second target, so only a material shift in news-flow will likely damage this trade. With this in mind, look for oil prices to remain soft and USD to remain bid, with NOK taking the brunt of the greenback’s bullishness this week.
Source: Tickmill
