Oil, Doha and the Aussie's bearish gap

OPEC and Non-OPEC countries met over the weekend in Qatar's capital, Doha, to discuss a potential output freeze in order to stablize oil markets, however, talks finished without any agreement.

Once again, Saudi Arabia and others have changed their position, and this could lead to a busy week ahead in the oil sector and related currencies as well. The meeting started in absolute in disarray due to the Saudi's the principal oil exporter, threatened not to agree to the deal unless oil-rich Iran does

Iran says frozen output would make it impossible to take advantage of the lifting of economic sanctions, which followed after a nuclear deal with six leading world powers was struck

Meanwhile, there has been an open-ended strike in Kuwait and should this continue this week, it could reduce oil production in Kuwait dramatically and add further volatility to oil and commodity currencies this week.

AUD/USD has been highly correlated to oil performances, relating to China and subsequent effects on the price of oil as China accounts for a large share of the global demand for oil and what goes down in China impacts the Aussie as being Australia's largest trade partner. Since WTI's low of $25.92 on 10th Feb and subsequent recovery to $42.36 highs on 12th April, the Aussie has rallied from 0.6983 to 0.7733 highs.

We are now below the MA's once again on the hourly sticks on this oil situation with a target towards the 200 sma on the same time frame at 0.7613.