AUD/USD skyrockets by more than 2%. I can't find any specific news that explain this rally. Actually, no news in relation to this unusual rally at all. Did I miss something?
in this case the rally had nothing to do with China. the market was expecting Australia to lower the interest rate last month. when that did not happen, traders were looking at the May meeting. however a speech by Stevens indicated no change at the coming meeting.
yes, that's getting to be a regular occurrence. I don't trade those things. You can just look at the chart and say, "Well, it looks like they didn't ease." as for China, I have a correlation in my mind between aud and china. It's never perfect, but just kind of a rule of thumb for the future. I'm dealing with the same thing in CAD and CL. As goes one, so goes the other.
Well, I don't see a reason for correlation between China and AUD. A agree that there is a strong ground in expectation of correlation between Oil and Canadian dollar. However I would expect more correlation between BZ and CAD rather than CL. As I understand canadian oil is BZ, not WTI / CL. Regarding to AUD - I was surprised that I couldn't find news related to this rally. Obviously dollar was weak to everyone last week, but 2%+ daily move should cause some interest in media.
everything Australia produces China needs. Those AUD rate announcements usually occur when nobody else is trading so they really move the currency. But when it is all said and done it usually reverts back to a more normal day.