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Thomson Reuters
Nov 01 - 07:24 AM
AUD/USD - COMMENT-AUD/USD Rally Is A Tiny Correction - Bet On Bigger Fall
First appeared on eFXplus on Nov 01 - 05:05 AM

AUD/USD's rise in the past 24 hours is a minor correction of a big decline, and with China apparently losing the trade war with the United States, it's worth betting currencies of close trading partners like Australia will suffer more.
AUD/USD would have to reach 0.7284 just to complete a 23.6 percent retracement of its drop this year.
The latest bounce came about largely because of the failure to take out option barriers at 0.7000.
It is not being driven by any notable change in fundamentals, and techs are steeped in bearish territory.
Those who successfully defended 0.7000 barriers will sell AUD/USD strength to re-load for a further defence.
Today, the dollar is the asset to hold for AUD/USD traders and the rate gap weighing on the pair is going to widen .
Chinese manufacturing is on the brink of contraction, its stocks threaten a bear trend and the yuan is bumping along the bottom.
The AUD, little better than many emerging-market currencies, shouldn't rally far .

AUD/USD weekly Click here

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