6 Feb 2014
Flash: AUD/USD targets 0.90, dip buying favoured - FXStreet
FXStreet (Barcelona) - The Australian Dollar has been boosted, yet again, by solid retail sales and trade surplus numbers, with the last squeeze of shorts above 0.8840 suggesting further upside based on ichimoku readings, notes Ivan Delgado, Head of Asian Editors at FXstreet.com.
Key Quotes
"The impulsive counter-trend run is forcing a heavily short market to bail out. The RBA-induced run has caused a re-think in market positioning, as observed by the huge 2c run on Tuesday."
"The re-adjustment of fundamentals in the Aussie short term (RBA has eliminated the dovish tone to currently stay neutral on rates outlook) has certainly caught perma bears on the wrong foot, which combined with constructive ichimoku readings on the weekly, daily and intraday charts, suggests that the main risk is for additional gains on Thursday."
"Note, the NFP risk event from Friday will see liquidity thin out, thus targets beyond 0.90 should be harder to come by as traders get sidelined. That said, one should expect committed buying interest on intraday setbacks."
Key Quotes
"The impulsive counter-trend run is forcing a heavily short market to bail out. The RBA-induced run has caused a re-think in market positioning, as observed by the huge 2c run on Tuesday."
"The re-adjustment of fundamentals in the Aussie short term (RBA has eliminated the dovish tone to currently stay neutral on rates outlook) has certainly caught perma bears on the wrong foot, which combined with constructive ichimoku readings on the weekly, daily and intraday charts, suggests that the main risk is for additional gains on Thursday."
"Note, the NFP risk event from Friday will see liquidity thin out, thus targets beyond 0.90 should be harder to come by as traders get sidelined. That said, one should expect committed buying interest on intraday setbacks."