Last in, first out. Know, we’re not talking about trading rules but what is happening in AUD/USD. Those that bought strength this morning after getting “the wink” from RBA governor Stevens are either now booking losses or sitting very uncomfortably with longs. AUD has dipped as low as 0.8250 as the reflation trade suffers one of its periodic shake-outs. It remains to be seen if this is a correction or a trend shift, but we’ll tell you if and when we figure it out…Moral of the story: Beware central bankers bearing “gifts”.
EUR/USD has traded as low as 1.4138 after stalling just above the 1.4300 level earlier in the day.