AUTOREFRESH 
Asian FX market open: AUD continues to grind higher
By Sean Lee || March 9, 2010 at 22:05 GMT
|| 7 comments || Add comment
Not a huge amount of change in the majors overnight with the EUR and JPY more or less where we left them, the GBP is somewhat weaker and the AUD is a touch stronger. Sovereign buyers were busy buying on dips in cable and EUR/USD but it is the AUD/USD which looks most convincing. The technical picture is beginning to look ominously bullish. I’m adjusting the profit target on my long position to .9600 with my stop loss still below .8935.
Good luck today.
Hi sean
Do you pay any credence to the fact that the Aussie could be being bid agressively by Central banks and others who would like to short it on the back of what maybe poor Chinese data due today.
Just a thought as the rest of the market isn’t really agreeing with this bullishness, it seems a little artificial to me.
Simon
Morning Simon. That’s certainly possible but the way the market is now starting to obey certain technical levels suggest that the move higher has something stronger behind it rather than short term manipulations. It’s certainly possible that it gets marked up pre-data and then sold off but I still think that dips are for buying.
This will be a decent sized uptrend.
Ok appreciate your thoughts, my thinking is normally in a risk on environment then all the risk goes together normally, but its hard to ignore the technicals. I think its wise for me to stay out when indecision is on my mind then this is the green light to not trade it.
Have a good day Sean
Simon
Hey Sean, You know I lived in Australia and love the weather, the people, the beaches, the food- and the currency… but when I look at the 6month chart I still see lower highs and lower lows. If and when there’s a correction – whether it’s due to club med or fannie/freddie – aussie could be in the mid- to low 80s, or lower, fairly quickly. 96c? That’s a heckuva forecast, man. I hope you’re right, because that suggests a real recovery, which the world sure could use. Cheers,
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I’m ever the optimist JR, so now that the AUD/USD has started to rise I have absolutely no intention of getting off until I’m thrown. Thanks to you I’m in at a really good level and as I generally make my money of four or five good trades a year, I’m hoping this might be one of them. And it’s the FX market, so logic has little to do with the 3% or 5% moves, they are driven by market positioning and re-alignments