Forex Trading - AUD/USD Flight to Commodity Based Economies (See Chart)

The Aussie and US Dollar currency pair has been in a bullish upward channel since the beginning of 2008. A microcosm of that trend has continued into the summer months, with the channel displayed below seemingly headed to an apex. The strength of the Aussie against the US Dollar does have a lot to do with the general weakness of the USD across the board, but the strength of the Aussie at these levels can also be attributed to their commodity based economy reaping the benefits of surging prices. It will be interesting to see how much more steam this pair has with a lot of the bad US economic news already built into the market and commodity prices trading off their highs.