With AUDUSD closing at .9302 (below yesterday’s low) we completed a bearish outside day. We would now expect AUDUSD to test the recent lows of .9239, with a break through that level suggesting further losses towards .9203 – .9211, the lows from May.
Once again, thanks to our hedge fund insider in the FXWW chatroom for posting the following information from WestPac. The Reserve Bank of New Zealand increased the cash rate to 3.00%, as unanimously expected by economists and financial markets. In its statement, the RBNZ reiterated the main message that the OCR is set to rise
Here’s an interesting piece from the FXWW chat-room on Reuters Messenger: “SocGen comments- This correction differs from your run of the mill. It was clear some EM reduction was already on the way a few days before the correction turned vicious and little of it showed classic contagion. The size of the EM pressure was of