Despite the fact that US markets close on their lows of the day, EWA ( Australian IShares ETF NYSE) did manage a gain of 1.2% at this session just ended 18/12/2015 US Time. SPY (SP500 SPDR NYSE) had closed 2.48% lower. Both are in USD off course and EWA is not currency hedged. Gain with EWA can be due to different factors. Performance of Australian Dollar as well as buying pressure.
Australian Dollar Trust “FXA” NYSE was up 0.78% overnight which was one of the contributors to the rise of EWA. Buying must have been the other.
Main window @ the chart below EWA (Australian IShares ETF), middle window SPY (SP500 SPDR) and the third and bottom is the FXA ( Australian Dollar Trust) all NYSE.
We know that the commodities are testing a major chart support dating back to early 2000s. In fact that support had been broken as of this writing (Intra month Dec. 2015). If this break is genuine ( it is, until proven otherwise), I expect the broken support of CRB around 180 to hold on any retest ( support becomes resistance). If we see a reversal above it, over the next few months, this breakdown may well turn out to be a false, suggesting a potential counter cyclical rally with CRB ( to start with). I am keeping an eye on this level (180 zone) on daily basis at present.
Here is the Monthly Chart of CRB ( Commodity Index ).
Charts are courtesy of StockCharts.com
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