AUTOREFRESH 
AUD finds support from AUD/NZD short-covering
By Sean Lee || July 28, 2010 at 22:33 GMT
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AUD/USD has again stalled just above .8900 and has popped up 20 pips as AUD/NZD shorts cover post-RBNZ.
The events of yesterday and today tell us a lot about how the FX market functions. It’s the expectation of events rather than the event itself which moves the market. The AUD was strong in expectation of a high CPI figure and therefore more rate rises. AUD/NZD was aggressively sold yesterday after the weaker CPI and in the almost 100% knowledge that the RBNZ would hike. Yet when the RBNZ raise rates by 25bps, the NZD gets sold aggressively. Why, because the expectation is now that they won’t hike for another few months at the earliest.
No wonder market participants are so keen to spread rumours.
Strangest thing I’d ever seen…. Must have wiped out loads of shorts!? as it did come in as forecasted – this just made no sense to me! Believe it or not, I was long AUD/NZD at the time trying to sort a way out – and 100 pips later, couldn’t believe my eyes!
Impulse moves, corrective moves & wtf moves
Why the face (wtf) according to Phil from Modern Family (classic show)
WTF LOL
Good one…. both! 
Yes, my short was taken out (sob). I should have known better given Bollard’s record for talking down the kiwi. 0-2 for me versus AUD/NZD. Don’t think I’ll touch that one for a while. Quite a big gap on the chart though.