It has been a cruel March 4 for AUD/USD traders. Many were shaken out of longs on this morning’s weaker than expected GDP data only to watch the pair bounce strongly on talk of a new Chinese stimulus package and a strong Chinese manufacturing PMI. Risk aversion across the industrialized world has receded today and commodities have rebounded strongly, two fundamental underpinnings for the AUD.
Selling interest has been steady in AUD/USD but short-covering has been intense. Sellers are said to be particularly keen on the approach of 0.6500.
