Why is the deputy RBA Governor talking the AUD up?
He’s not exactly talking it up but it’s a bit strange that he is downplaying the Steven’s remarks from yesterday, unless of course they were totally misinterpreted?
As FXWW888 opined yesterday, if the RBA had actually cut by 25bps on Tuesday when the AUD/USD was trading at .9220, it’s unlikely that it would have fallen by 200 pips. But that’s what has happened in the interim given the easing bias and the Stevens remarks.
There is little doubt in my mind that the AUD/USD is now quite oversold and we should now revert to dip-buying mode.
Hi Sean, does this apply to AJ and other crosses too? GBP/AUD looks like it’s topping.
I’d be careful on GBP Jack, if EUR/GBP starts falling fast then GBP/AUD won’t fall overly hard
Thanks Sean, do you think (potential) Aussie strength is best played out via EUR/AUD?
Personally Jack I think best through AUD/USD, which will turn sooner or later and be back at 95cents. Try a dip-buying strategy in smalls for a few sessions and see how you go. Keep it tight but if it starts to work then ramp up a bit
Watch out for the Lowe blow …. I see this as a sucker punch ….. lower before higher. There is still no fundamental reason to buy AUD – yet