Wednesday, October 27, 2010

AUD: Australian previously overbought now rolled back stronger than many

Vulnerability in the Australian on these high levels was evident in the first half of the week, when he, instead of once again fight for parity, rolled back to 0.97. One of the main explanation for such a drastic rollback Australians can be called passing the scale covering of short positions on the dollar, which flies in the forex market and with long positions in Australian currency, has repeatedly noted that the Aussie could get the biggest shock. This problem is not helped nightly news that the CPI in the third quarter was slightly below expectations, reducing the likelihood that the RBA will raise interest rates again at a meeting next week. At around 2.8% on an annualized basis, inflation is now rolled back to the target of 2-3%, which, no doubt, would suit the Central Bank. Also at the Australian pressed a sharp decline in gold prices and reduced stocks across Asia. As we have noted, if those who risked, is now in the process of reducing risks to the end of the year, the Aussie will continue to experience difficulties.

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