AUD/USD took a hit earlier in the session on rising risk aversion as well as blunt comments from a Chinese trade group, essentially calling hopes for a rebound in Chinese iron ore demand a fantasy.
Long-time readers know I’ve felt the Chinese domestic demand story leading the world out of recession is a fantastic proposition and that it will be the developed world leading the charge, if there is one, as usual.
Barriers at 0.7000 were taken out after the comments. Another barrier resides at 0.6950, part of a 0.6950/0.7300 double-no-touch strategy, (see Jargon section for definition) traders report. We trade now at 0.7044; resistance lies at 0.7070.
