The break out higher in EUR/AUD through 1.2550 in the NY session has been further extended to 1.2630 and this is helping pile the pressure on AUD/USD bulls which is looking set to target sell stops through 1.0200. AUD/USD Technical support below lies around 1.0180 ahead of the Sept 5 lows of 1.0165.
The break down through 80.00 in AUD/JPY is also significant and triggered a round of sell stops and now targets the Sept 5 lows of 79.68. There’s some support tech below in the 79.30/40 bracket but likely sell stops just below
Money markets are now apparently pricing in the odds of a further RBA cut in November at 80% and with Governor Steven’s saying the mining boom will now peak earlier than originally expected some bank analysts are now seeing a succession of cuts down to 2.5% next year.
Let’s see what China does about itself though before getting too carried away.
Yes, Gerry… looks like i’m getting the latest AUD/USD poll dead wrong anyway… :( .. but i like a bit of egg on my face from time to time