
The Aussie is, once again, at
a point of decision. Up to a few days ago it was in a decent upward trend on
the back of a decisive election result and improving sentiment from China , one of
the country’s largest trading partners.
Now the trend might be broken.
Higher highs and higher lows showed when it was definitely alive, but this
sequence has stopped. The pair is now poised on a well defined support level,
waiting for a catalyst for further movement. This catalyst could turn out to be
the Durable Goods report in the US ,
due out in about an hour and a half. Strong figures will lead to the likelihood
of a stronger US dollar, so we can look to the probability of a turnaround
in the AUDUSD in that event.
Governments do not always get
what they want in regard to currencies, but the Australian authorities would still prefer a weaker
Aussie.
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