AUD edging higher as PBOC eases credit squeeze
Those in the know also suggest that the ‘plunge patrol’ was busy in the Shanghai share market yesterday afternoon, entering the market when losses hit exactly 20% from the absolute highs.
The AUD/USD has been used by the hedge fund and CTA communities as a proxy trade for the Chinese credit crunch and the easing of the cash squeeze is likely to trigger some modest profit taking (and also to increase the size and proximity of trailing stops).
I’m still running a large-ish long position but am looking to start booking some profits and reduce my risk on intraday rallies. I have a small sell order in the market at .9315, just ahead of prior lows, and just in case the bears manage to hold on. (Edited, sorry wasn’t too clear the first time 🙁 )