AUTOREFRESH 
AUD/USD: Continues to Slide in Early London
AUD/USD has had a roller coaster ride today. After closing in NY at 0.8168, the pair has traded a whopping 0.8088-8373 range; near on 300 points . We now find ourselves 150 points down from the intraday high and looking decidedly ordinary.
Whilst some blame today’s move on the RBA checking prices in the Asian morning – rubbish – the real culprit remains risk deduction. AUD/USD positions were extended across the board. AUD/JPY fell 8% at one stage yesterday and ricochet back over 4% today. Ditto EUR/AUD.
Option traders say players are covering themselves through the options market and paying up to 25% for volatilty which can normally be purchased for less than half that price.
I don’t have a firm view on where it is headed but I would be a seller on rallies near 84 cents on the expectation that a move to 85 cents would see the topside out.
Hi Peter, didn´t hear you long time. What happened with Gerry.? Anyway, thanks for post. To buy AUD in dip seems goog idea. Thanks. Pet
Very useful commentary.
Many thanks.
Sean, at the present moment, the 15- and 30-minute MACD of the AUD/USD is a “textbook” classic example of when to short a currency. When you have a spare moment, please admire the ongoing carnage and inform all of us loyal readers when/where the RBA might “ring around”, potential derailing the ongoing profitability of “this afternoon’s” short festival.