10 Jul 2013
AUD/USD runs impressive recovery through 0.92
FXstreet.com (Barcelona) - AUD/USD exchange rate has recovered its mojo post China trade figures, now trading at session highs of 0.9210 as opposed to earlier cheaper quotes, with the lowest printed at 0.9125.
China trade number fail to keep AUD/USD down
The downbeat data in trade number by China, where both exports and imports fell way short of expectations, has failed to produce sustained weakness in the Australian Dollar. This is an early sign that a market overly short and with little motives to keep pushing convincingly down. Traders have also shrugged off a higher pricing (60%) for a cut by the RBA in August.
If AUD/USD cannot go down on bad news...
As Sean Lee, Founder at FXWW, notes: "The AUD rallied yesterday after poor domestic business data virtually ensured an August rate cut and it is back at opening levels again today despite more poor Chinese trade data. I think the AUD has fallen far enough, and I expect to see some very nasty short-squeezes in coming sessions."
China trade number fail to keep AUD/USD down
The downbeat data in trade number by China, where both exports and imports fell way short of expectations, has failed to produce sustained weakness in the Australian Dollar. This is an early sign that a market overly short and with little motives to keep pushing convincingly down. Traders have also shrugged off a higher pricing (60%) for a cut by the RBA in August.
If AUD/USD cannot go down on bad news...
As Sean Lee, Founder at FXWW, notes: "The AUD rallied yesterday after poor domestic business data virtually ensured an August rate cut and it is back at opening levels again today despite more poor Chinese trade data. I think the AUD has fallen far enough, and I expect to see some very nasty short-squeezes in coming sessions."