Discussion in 'Forex Trading' started by boobaies, Sep 29, 2008.
why is the AUD tanking ????
From Thomson Reuters:
There's been a heavy Japanese data calendar this morning to end the fiscal half year, but all the attention for JPY traders is on equity markets and any bounces there will struggle to make headway as the US bail out plan remains unloved. However, while USD/JPY is lower, it is seeing some benefit from the 'dollar smile' (search 'Smile! '), and the real pain is being felt on the crosses. The latest TFX data shows Japanese retail even longer of AUD/JPY, and either Mrs Watanabe knows something that we don't, or she's off to Australia for a big holiday!
EURJPY similarly had a tanking, and this affected EURUSD as well as AUDUSD - with Japanese investors repatriating a lot from the markets to protect themselves in the turmoil.
The AUD/USD has made an impressive recovery after very early in the session getting hammered down to 0.7935 by US model funds. The AUD/USD is back above 0.8000 on solid AUD/JPY buying by Tokyo names that has taken the cross from the low at 82.15 earlier to 83.50. Traders say that the AUD/JPY buying is probably related to month-end fix demand, which coincides with Japanese fiscal half-year end. Hourly resistance in the AUD/USD is found at 0.8045/50 and a break above 0.8050 would ease the downward pressure. The AUD/USD trades 0.7995/0.8000.
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