Aussie Dollar Flash

Aussie Dollar Flash

Seller exhaustion was apparent in the lead up to the FOMC minutes, as shorts continued to unwind.  While selling pressure has re-emerged this morning at .7620-.7625, one does get the sense that the FOMC minutes was the last kick of can for the Aussie bears heading into 2018. And given the dovish Fed overtones, for those fortunate to have been riding shorts since the convincing downtrend emerged in mid-Sept, traders will now be more inclined to cover shorts which should temper any near-term downside momentum. And while commodity correlations have weakened of late, Dalian Iron ore is up over 3.5 %, as the Pboc continues to inject cash in an attempt fine-tune their deleveraging act, it still underpins the  Aussie dollar sentiment to a degree.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Stephen Innes

Stephen Innes

Head of Trading APAC at OANDA
Stephen has over 25 years of experience in the financial markets and currently based in Singapore as the Head of Trading Asia Pacific with OANDA. Stephen's market views focus on the movement of G-10 and ASEAN Currencies. His views appear in Bloomberg, CNBC.Reuters, New York Times WSJ and the Economist. His media appearances include Bloomberg TV & Radio, BBC International, Sky TV, Channel News Asia, ASTRO AWANI and BFM Malaysia. Stephen has an extensive trading experience in Spot and Forward FX, Currency and Interest Rate Futures, Money Market Derivatives and Precious Metals. Before joining OANDA, he worked with organisations like Nat West, Chemical Bank, Garvin Guy Butler, and Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes
Stephen Innes

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