Aussie Dollar and Interest Rates

Let me start this post off by saying that for those that don't know, I'm an Aussie. 

Many many years ago (10 to be precise) I remember a friend bought a whole lot of USD (I think they were travellers cheques that he bought) when the aussie dollar was trading at just over 80 cents as he felt that there was no way the dollar could survive at that strength against the USD. Looking at a monthly chart it seems he was correct. I never did ask him how that investment went for him though I find it interesting the current situation that is occuring as we are nearing back up towards the 80 cent mark.

Today the government upped interest rates and I think that has only helped the dollar to keep climbing, I wonder how much further it will go before we experience a breakdown. I've opened a long position on the AUD/USD which I'm planning to hold as a longish position until the RSI gets up over 70, I've set my trailing stop at 50 pips which might be a little too close for fluctuations in a long term trade... though haven't been able to find any good info on how to manage the stop loss, except what I wrote about once before.

Monthly Chart of the Aussie Dollar

Related

1. I am a chicken
2. My Trading History #1
3. Right on Cue
4. I really should also look at fundamentals
5. I'm going to close it early

Archives

» Nov 2006

» Oct 2006

» Sep 2006

» Jul 2006

» Jun 2006

» May 2006

» Apr 2006

» Mar 2006

» Feb 2006

» Jan 2006

» Dec 2005

Links

» Forex Blog

» Forex Project

» Oanda

» FOREX @ Investopedia

» Baby Pips

» Trading Software

» Forex Bastards

» Ernest Chan