Exporters get bids filled after 3Q GDP miss: Traders
According to "Asian based traders", bids from Australian companies and options desks under 0.7590 go filled on the GDP miss.
- bids for exporters now between 0.7530/40
- As for the spike higher to 0.7634, traders are citing a possible algo error on the back of the 0.9% revision (vs the headline). The prior month was revised to 0.9% from 0.8% That might have got the algo's mixed up.
Technically, the price action has traded between 0.7571 and 0.7584 since the initial low was reached. A move above the 0.7584 might solicit more covering by shorts. The 100 hour MA at 0.7594 and the 200 hour MA at 0.7599 still need to be breached for the buyers to take back more control.
On the downside, the 0.7551-56 area is home to a number of swing lows going back to November 22. Although the exporters might be lower, I see this area as being a tough level on a test today.
