Market settles down for quiet afternoon post-PMI

Wishful thinking perhaps on my part. I’ve added to my AUD/JPY short position and this is one where I am following my gut-instinct 100%. As I said earlier, dealers are reporting decent buying interest in the AUD/USD from asset managers but I still get the feeling that the AUD is ripe for a big downmove. The riskiest and most volatile pair is of course AUD/JPY, so here’s hoping that my instincts don’t let me down. I’m keeping stops fairly tight anyway so the risk is definitely limited.

Official PMI was quite disappointing, which surprises us conspiracy theorists who don’t believe a word the NBS has to say! The HSBC reading was better than expected but the AUD has not been able to rally! A bearish sign perhaps?

  1. Sean, i need to read next IMM positioning but bad nfp data perhaps will trigger sharp rebound in AUD/USD? i myself not very sure if RBA will cut rates on February. i expect they hold & stay positive about whole world especially Europe & China. my experience in last February 2012, i sold AUD/USD at 1.0740 at beautiful monday morning only to be stopped out at 1.08 next day! 🙁

    of course it’s just a thought and lower AUD/USD would please me more as i wish to buy near 1.03

    EUR/AUD now surge above 1.31 and i thank you for long trade idea!

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