FXWW News/Open/Wrap

Asian market open

FXWW Asia Open Briefing 30-08-2013

I still like USD/JPY higher; AUD/USD likely to trade between .8840/.9070 in coming days but remember that the election is only 8 days away and with Labor definitely going to be tossed out, this should lead to AUD short-covering; keep an eye on EUR/CHF as there were strong hints yesterday in the chat-room that the big players have started to buy again; prefer buy-dip strategy in EUR/USD and cable but the going will be very slow.

  1. Hi Sean,
    You may be right about the AUD rallying in response to a change of government. You’ve got a lot more experience than myself with these things, after all.
    That said, it does seem a bit of a mystery to me why the markets would get too excited about an Abbott led government. This brief article in The Economist (I pinched the link from Forex Live) endorses Rudd mainly because he’s the least unappealing alternative (sounds like forex choices! lol). I’m not exactly enamoured with Rudd and Labor’s in a shambles, but looking at the alternative, I tend to agree with them on this one.

    http://www.economist.com/news/leaders/21584343-kevin-rudd-just-about-deserves-second-turn-lucky-no-more

    If there is a bit of election related short covering in the AUD, would it be because that’s simply what the market expects and it becomes a self fulfilling prophecy?

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