Buyers made the completion of an ABC corrective sequence to end the move with today's NY session. Europe are now leaving their desks with defensive superiority at the 70.2x highs. Next comes a test of the lows as the next customary inventiveness of swings across risk markets enters into play. The promises of a vaccine any time soon sadly look like unicorns, politicians will do anything to sell the re-open.
After the preparatory manoeuvres complete at 0.650x, AUD sellers are keeping an eye on the weak fundamentals. Covid delivered massive blow to Australia, and with little immunity on the health front further pockets of lockdowns look a matter of when rather than if. Now the RBA is a bridge builder, although PBOC are in retreat and sheltering until the storm passes. It means the "Giant Panda" will no longer be on the AUD bid for the next few Months, and Quarters.
AUD is surrendering the 70 handle with the close of shop today. Why? Well, because once the bid expires without breaking the barriers ahead, the lust to expand which was missing until then, is well and truly gone now. Early buyers cutting their longs into resistance, and macro players happy to park in JPY in this environment to prevent any breakup.
Reassessment in the bearish view will be required above 70.2x as the nature of the move will be considered impulsive. For now expecting it to wend its wearisome way back towards the lows. It will be interesting to see how buyers flee for the close.
After the preparatory manoeuvres complete at 0.650x, AUD sellers are keeping an eye on the weak fundamentals. Covid delivered massive blow to Australia, and with little immunity on the health front further pockets of lockdowns look a matter of when rather than if. Now the RBA is a bridge builder, although PBOC are in retreat and sheltering until the storm passes. It means the "Giant Panda" will no longer be on the AUD bid for the next few Months, and Quarters.
AUD is surrendering the 70 handle with the close of shop today. Why? Well, because once the bid expires without breaking the barriers ahead, the lust to expand which was missing until then, is well and truly gone now. Early buyers cutting their longs into resistance, and macro players happy to park in JPY in this environment to prevent any breakup.
Reassessment in the bearish view will be required above 70.2x as the nature of the move will be considered impulsive. For now expecting it to wend its wearisome way back towards the lows. It will be interesting to see how buyers flee for the close.
Trade closed: stop reached:
Damn, stops could not hold the overnight volatility - an awful trade.