AUD,NZD/Flows and Orders

AUD/USD: Eyeing short-term stops below 1.0500

The HSBC China manufacturing PMI data will be released in an hours time and this will be the next major risk event for the AUD. Commodity and precious metal prices have taken a hit in the last 24 hours and AUD bulls will be disappointed that we are currently testing short-term support near 1.0510. There are stops reported below 1.0500 and again below 1.0480 and they will be targeted if the PMI number disappoints.

  1. Last December AUD took a silly hike into Feb 2012. The hike was unbelievable: below parity -> 1.08. Unless RBA intervenes, for me (and on my broker) selling AUDUSD is expensive. I prefer carry trading on this pair 🙂

  2. Great advice Sean to look for AUD/USD to test 1.0510 breakout. Thanks!

    My medium term analysis on the AUD/USD suggests some tough resistance above 1.06 that may take some time to grind through. So the strategy is to buy into weakness and sell on tests of 1.0600 – 1.0620, probably for the next 8 weeks.

    On the downside, it re-enters the value area of the previous auction at 1.0470 and if seen, could result in a more substantial correction back to 1.04. At that level, I believe excellent risk reward exists for buying the dip, with a stop at the 1.0380 level. But I doubt we break 1.0470 so it is hypothetical.

    Longer term I see the old highs being tested and broken, quite substantially – probably by the end of 2013.

    Again love your work and thanks for posting it with such discipline.

  3. Sean
    I am covering half the bird in hand @ e/y 110+ & let the other half ‘fly’ for a few more flaps
    Tks for yr concern
    Anil

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