Two reports from this mornings Sydney Morning Herald show why the AUD might struggle to maintain it’s recent momentum. Firstly, further reports that China is to stop its policy of strategic stockpiling, at least for the moment, and secondly that iron ore price negotiations with the Chinese are in tatters. This has surely got much to do with the Chinalco/Rio failed deal.
The AUD/USD is already 15 pips lower in Sydney trade, currently trading at .8070. As mentioned below, more heavy sell orders are seen at .8100 with tight trailing stops above .8110.
