Of the three commodity dollars, namely the Aussie, Kiwi and Loonie it is perhaps the Aussie which finally appears to be showing signs of a potential reversal from its oversold state on the slower time frames of our currency strength indicatort (the blue line). And of the Aussie pairs it is perhaps the AUD/USD and AUD/CAD which appear the most interesting.
Starting with the AUD/USD it was the failure in May to break through the resistance at 0.8160 which was the start of the its downards descent which saw the pair finally find some support at 0.6906 on the Friday before the Labor Day Holiday in the US. And whilst this level was tested once again last Monday, since then the AUD/USD has managed to claw its way back to 0.7138 at time of writing.
Such positive sentiment and similar price action can also be found on the daily chart of the AUD/CAD where the test of support at 0.9149 on the Friday before the Labor Day holiday appears to have been trigger for the start of the move higher in the pair, with the AUD/CAD trading at 0.9461 at time of writing.
For AUD/USD the 0.7150 price point is now an important level that needs to be breached, and with the pair having moved through the VPOC on the 4 hourly chart there is no reason to suppose this cannot be achieved.
For the AUD/CAD the pair is now running into reasonably stiff resistance in the 0.9480 region although it is encouraging that on the 4 hour chart the price action is currently above the 200 ma.