As we’ve been saying for the last month or so, this is a favoured trade of many professional traders looking to play the short-AUD card. We’ve seen prop traders and hedge funds building short positions around the .94/.95 level and last night one of the bigger players decided to book a chunk of profits after the poor employment data in Australia. The buying was very large around .8850 and that’s why the very large stops in AUD/USD below 1.0570 were so easily soaked up. Then when Europe opened, they bought the USD/CHF leg aggressively.
Well played whoever you are, nice to see some skilled traders at work.
