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28 Mar 2014
AUD/USD: Where are all the sellers?
FXStreet (Bali) - The relentless push north continues, with the Aussie now targeting stops above the 0.93 zone, with a breakout exposing the next big level at 0.9330, which represents the 61.8% fib retrac from the Oct-Jan slide.
The appreciation in the AUD/USD this week has taken many by surprise, as the antipodean currency goes from one of the ugliest to the darling of the FX market. The zero pullback seen today has market participants speculating on what is causing such a meteoric rise.
Triggers being talked go from aggressive carry trades being played, exporters' demand, seasonals (April, which is around the corner, is the best month for AUD/USD by far), China's stimulus hopes, technicals/sentiment, RBA having toned down rhetoric on the Aussie, anticipation of a more hawkish RBA... and the list goes on...
Regardless of the reason fueling the AUD spikes, the message the market is sending is loud and clear. This is not a time to bet against the Australian Dollar if one is a short term trader, with the solid and ongoing non-volatile trend developed justifying calls to higher levels. As mentioned earlier, the 0.9330/35 will be the next focus for the market, with a break above exposing 0.9420 (nov 20 high).
The appreciation in the AUD/USD this week has taken many by surprise, as the antipodean currency goes from one of the ugliest to the darling of the FX market. The zero pullback seen today has market participants speculating on what is causing such a meteoric rise.
Triggers being talked go from aggressive carry trades being played, exporters' demand, seasonals (April, which is around the corner, is the best month for AUD/USD by far), China's stimulus hopes, technicals/sentiment, RBA having toned down rhetoric on the Aussie, anticipation of a more hawkish RBA... and the list goes on...
Regardless of the reason fueling the AUD spikes, the message the market is sending is loud and clear. This is not a time to bet against the Australian Dollar if one is a short term trader, with the solid and ongoing non-volatile trend developed justifying calls to higher levels. As mentioned earlier, the 0.9330/35 will be the next focus for the market, with a break above exposing 0.9420 (nov 20 high).