AUDUSD
The rally in USD this week has created further movement in the AUDUSD downside move. With equities and commodities pulling back amidst the uptick in USD, the reversal here looks to have room to grow deeper. Price has now broken below the neckline of the large head and shoulders pattern at .7564 and while below here, the focus is on a move down to the .7413 level next. With the market now looking towards potential Fed tapering at some point this year, while expectations are growing for RBA QE3 later in the year, AUDUSD short positioning has room to build.
Key Data to Watch
Aussie and US PMI data next week will be the main data focus for traders. However, the pair is likely to be mostly driven by USD flows. If the current USD short unwind gathers pace, AUDUSD should continue lower across next week. Keep an eye on commodities and equities also, if there is any move lower in those markets, this will see the AUDUSD slide accelerate.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.