AUD,NZD/FXWW News/Trade Ideas

AUD/USD: Another topside test favoured in early London

We’ve got to remember that overall market sentiment remains bearish on the AUD but also that positioning is heavily short. We saw the first resistance level get taken out at .9305 after the CPI data put an August rate cut in doubt and then the bears returned in force after the HSBC data, selling the AUD aggressively.

But where to now for the AUD? The China data was bad, its now history, and the market is still short! In addition to this, real-money buyers have returned and there is still less liklihood of a rate cut in August!

I really think the AUD goes higher, talking my position as always, but in this case the market reactions would seem to be supporting me.

  1. Am long and playing for .9600 with a stop below 90cents,it is the only trade am involved in currently as lady luck kinda abandoned me,hope it doesn’t jinx your posie 🙂 Events at FXBriefs were a reminder how harsh the Markets can be.Gd luck to us.

  2. Test of the 0.9320 area and rejection had me lighten position looking for lower levels to re-enter. USD showing divergence on some crosses also makes me think some drifting correction is likely. Probably over analysing but conscious of locking in profits before they slip away. Thanks for your insights Sean!

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