AUD Trading Outlook
Australian Dollar (AUD) the AUD/USD has been under pressure all week until the buyers finally sparked a short squeeze overnight and we saw a move back above 1.0500. The AUD/JPY is testing Y88 and a break here might drag the major higher as well as we have seen this effect in the past. Y90 is the bull’s next target and will spark talk in the market of the return of the carry trade.
Australian Dollar (AUD) the AUD/USD broke lower with the USD strength to much for the China linked risk currency falling below 1.0500 and sliding to fresh multi month lows near 1.0420. The news out of China is for a continued managed slowdown to counter rising social inequality especially in the housing sector.
Australian Dollar (AUD) the Aussie was the weakest currency in the market yesterday with China’s recent slowdown hurting the Asian commodity first. Support was found under 1.0500 and we have opened the day stronger in Asia as bargain hunters look to buy the dip. Looking ahead, BOJ Rate Announcement forecast to hold at 0.1%.
Australian Dollar (AUD) the Aussie reversed as support disappeared even with stocks up and Gold higher. A string of poor economic data last week finally took its toll and we saw the risk currency moving back below 1.0600 into the weekend. On Monday the AUD/USD opened very weak with the largest Chinese trade deficit 30bn vs. 5bn forecast the biggest in over 10 years in February. Looking ahead, Australian February Business Confidence previously at 4.
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