Wednesday, November 17, 2010

AUD: mantra for Aussie players seem to be: Sell on rallies

After several months, when all are better than ever for the Australian situation has changed and everything looks are not so rosy. On the background is still very significant long positions among the traders, the Australian starts to stutter in response to increased risk aversion, which weighs heavily on commodities, stocks and higher-yielding currencies. To Australian currency also contributed talks in China that will soon be introduced price controls on food in order to limit inflationary pressures. Since then, the Fed decided to introduce the QE2 on November 3, Aussie fell to four figures to 0.9765 at the moment. It is worth noting that the U.S. dollar some support at the moment because of the large short base on the dollar and the results of the midterm elections that will lead to increased emphasis on fiscal consolidation by again coming to power of the Republicans. At the moment, trade mantra of many players on the Aussie is likely to sound like: sell rallies.

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