Comments on: AUD: Looks like a Friday short squeeze

By: Iridium

Iridium — Fri, 05 Oct 2012 02:30:50 +0000

Nachiket, Europe is shit because you listen to much to what they say in TV. Don’t forget that t has still very strong countries behind it.
You think Spain is just “shit”? Well it has a GDP that is superior to Australia. Yes, and I don’t speak about Italy, France or Germany…
http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal)

Aussie has currently great economic indicators but don’t forget at its very much related to the Chinese boom (especially housing sector). So in case we have a hard landing in China, AUD could get slammed totally to below 0.9.

By: Sean Lee

Sean Lee — Fri, 05 Oct 2012 02:27:41 +0000

Good points Iridium, certainly possible though it just doesn’t feel as if the mkt has sufficient momentum. Nevertheless, if its trading at 13050ish half-way through the European session then I will also become a believer

By: Nachiket

Nachiket — Fri, 05 Oct 2012 02:22:45 +0000

no short squeeze. probably short squeeze has happened a lot in euro. does not deserve to trade above 1.28. aussie was oversold and it is still the best performing economy by far. europe is shit. us is stuck in fiscal deficit mess and japan is in recession since 1990.

By: Iridium

Iridium — Fri, 05 Oct 2012 02:18:39 +0000

Good morning Sean,

The strength of yesterday rally makes me wonder if we are not already in the next leg up (the last part or exhaustion rally). A strong NFP today could be a catalyser and I would not be surprised that AUDUSD goes even to 1.04x over the next few days in a general risk rally !!! I am coming to the conclusion that I will be looking to short AUD when EURUSD will have reached 1.33/34.

However should a bad NFP come through, all bets are of and we will be looking toward very low levels.

By: Jason Jin

Jason Jin — Fri, 05 Oct 2012 01:54:59 +0000

Never underestimate AUD is what I would say. I have a friend learned the lesson a very hard way…