24 Jan 2014
Perfect bearish storm hits the Aussie
FXstreet.com (Bali) - It has been a perfect bearish storm for the Aussie in the last 30 minutes of trading, losing plenty of ground on RBA talking down the currency coupled with headlines out of China, referring to an alert being issued on credit risks in the coal industry.
According to Eamonn Sheridan from Forexlive: "The headlines is possibly related to China's ICBC bank not accepting to bail out an investment trust product, with default a possible scenario." He adds that while bad news, "China’s ICBC says will help bail out investors in troubled shadow-banking scheme..."
If short the Aussie these are the type of opportunities in which letting profit roll for further advances could be a wise move as the headlines have spurred quite a momentum in the sinking AUD. The next big support for the AUD/USD comes at 0.8550, 50% fibonacci retrac from the GFC low - all time high extension.
According to Eamonn Sheridan from Forexlive: "The headlines is possibly related to China's ICBC bank not accepting to bail out an investment trust product, with default a possible scenario." He adds that while bad news, "China’s ICBC says will help bail out investors in troubled shadow-banking scheme..."
If short the Aussie these are the type of opportunities in which letting profit roll for further advances could be a wise move as the headlines have spurred quite a momentum in the sinking AUD. The next big support for the AUD/USD comes at 0.8550, 50% fibonacci retrac from the GFC low - all time high extension.