Time to buy AUDUSD ?

Ok we know that the Australian economy is intimately tied to other Asian economies and particularly China and that growth expectations for China have been dimmed by a tighter monetary policy. However  it strikes me that the Australian dollar has somehow been heavily sold over the last few month when I look at the t-stat of the daily logarithmic changes of the AUDUSD over different time windows. The first chart shows the T-stats of various exchange rates against the US$ over windows of 1 week to 6-month. The second chart shows the rolling 3-month t-stats of daily logarithmic changes of major currencies against the US$. The plotted lines are  95% interval of confidences. Clearly the AUDUSD has been significantly oversold on a statistical basis.

stretch map fx 14072013 fx rolling 3 month t stat

The Australian stock market has held  well relatively to the rest of the world . The recent global surge in equities we have seen is not driven  only by a rotation toward equities due to the fear of central bank rising their interest rates at some time in the not so distant future but also  due to expectation economic growth.

world indices 14072013The oz seems quite cheap  at 0.9050 against the Greenback….tempting….