AUD/USD: Unemployment rate increased to 5.4% yet the AUD still rises

This market is short! Traders may be justifying the rise by looking at the data breakdown but if this market was really bearish then it would fall on a number like this.

I like the idea of buying dips 1.0200/10 with s/l below 1.0170 looking for a test of 1.0310/20. I would not buy into this strength, risk/reward doesn’t stack up in my view.

  1. Just got out of my shorts (that doesn’t sound right 🙂 ). I think AUD is going to hit 1.0324 soon. Then I will short again!

  2. Good morning Sean,

    Looks to me like a rally on low volume. I guess many traders as me have seen two contradictory numbers (one strongly positive 14.5K and the other one strongly negative 5.4%) and decided to stay out…

    We should even reach 1.03 based on this data…

    I think shorting the AUDUSD hasn’t even started yet really. BTW, I maintain that a weekly bearish candle on AUDUSD and/or AUDJPY will be extremely bearish possibly for several months to come. If the weekly candle is bullish, then we are in a rebound for the aussie.

    Imho, it seems the european problems are starting to have a new life, and the AUD heaven is back again as it happened during the summer. Therefore, the AUDUSD might continue climbing based on Spanish worries. When Spain will request a bail-out, then it will be time to buy EURAUD since this pair should reflect this relationship.

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