AUD about to tank?

Discussion in 'Forex' started by cstfx, May 9, 2008.

  1. cstfx


    Article on Reuters says that AUD is setting itself up from a dump, that trading patterns are similar to July 07 setup before August lows. Maybe 9500 is the top for now:'

    AUD/USD: IMM Data Reveals Risk for AUD Collapse
    Friday, May 09, 2008 4:25:00 PM

    San Francisco, May 9. The IMM data released this afternoon highlights the risk for an AUD collapse with net AUD long positions at the highest levels since July 2007. In July 2007, the AUD/USD rallied to 0.8871 and then collapsed to lows of 0.7677 by August, falling 12 big figures. Traders feel that the AUD is vulnerable to the combination of slowing growth and rising inflation as highlighted in the RBA report overnight. Also, any signs of a major commodity correction, seen as a risk after the blowout rise in oil today, could quickly undermine the AUD, fuelling the sell-off. AUD/USD is currently at 0.9433, tracking the EUR/USD higher into the afternoon which in turn was supported by the push above $126/brl in oil this afternoon.