23 Oct 2013
AUD/USD retraced all of its post Australian CPI gains
FXstreet.com (Athens) – The AUD/USD soared initially on the strong Australian inflation data, but the last couple of hours is heading immensely downwards mostly due to Chinese banks “jitters.”
AUD/USD pares all of its post US NFP, Australian CPI gains
While the “Aussie” after the solid Australian CPI data released, soared across the board, the last couple of hours is under severe pressure. Elaborating on, the AUD/USD was hovering at 0.9757 (having gained approximately 50 pips on the strong CPI data) but due to a couple of reasons pared all of its earlier gains, i.e. now is hovering at 0.9654 area. This abrupt downtrend pressure on the AUD/USD might well be attributed partly on “profit-taking”, but mostly to the news wires stating that “Chinese banks have issues.” Briefly, news wires are stating that risk hits the “snooze” button, “as China’s biggest banks tripled the amount of bad loans written off in the first half, cleaning up their books ahead of what may be a fresh wave of defaults.”
Technical Aspects on the AUD/USD
Karen Jones Head Technical Analyst of Commerzbank, mentions that the “AUD/USD has maintained upside pressure to reach the 200 day moving average at .9749. While we would anticipate that this will provoke some profit taking (we note the 13 count on the TD combo as well), and would recommend tightening stops on long positions/lightening positions.”
AUD/USD pares all of its post US NFP, Australian CPI gains
While the “Aussie” after the solid Australian CPI data released, soared across the board, the last couple of hours is under severe pressure. Elaborating on, the AUD/USD was hovering at 0.9757 (having gained approximately 50 pips on the strong CPI data) but due to a couple of reasons pared all of its earlier gains, i.e. now is hovering at 0.9654 area. This abrupt downtrend pressure on the AUD/USD might well be attributed partly on “profit-taking”, but mostly to the news wires stating that “Chinese banks have issues.” Briefly, news wires are stating that risk hits the “snooze” button, “as China’s biggest banks tripled the amount of bad loans written off in the first half, cleaning up their books ahead of what may be a fresh wave of defaults.”
Technical Aspects on the AUD/USD
Karen Jones Head Technical Analyst of Commerzbank, mentions that the “AUD/USD has maintained upside pressure to reach the 200 day moving average at .9749. While we would anticipate that this will provoke some profit taking (we note the 13 count on the TD combo as well), and would recommend tightening stops on long positions/lightening positions.”