The lower chart is the chart for the Gold ETF (Gold in Ozzie Dollars tradable as an ETF on the Australian stock market). As I suggested this morning, the Gold ETF is now testing the low of two days ago. That is also sitting on a long-term support line.

A bounce here could see the Gold ETF become a buyable proposition. A fall below that support line would be bearish for the Gold ETF and bullish for the general market.

The top chart compares the price of gold in US$ and Australian Dollars. You can see clearly what an effect a strong Ozzie Dollar has on the price of Gold in Ozzies.

This is also the reason why the Gold ETF tends to trade inversely to the general market. A strong Ozzie Dollar is supportive of the general market as funds flow into the country. A weak ozzie Dollar - the Gold ETF goes up - the general market goes down.

In the past twelve hours the Australian Dollar has risen about 1/2 cent to be, once again, above parity with the US Dollar.

That's bullish for our stock market - but not so good for the Gold ETF. Despite the flat finish, it is no wonder we saw some bullish activity (under the covers) in our market today.

But - tonight is another night.

Good luck

Red