Aussie Dressed up but where to Go?

This is Hilarious!

Westpac out calling for .8950 aussie.

Yesterday they were calling for .8500.

I love these guys. They are weathermen telling us which way the wind is blowing NOW, not ahead of time like Ashraf.

Good day Ashraf & everyone,

After the explosive unemployment report, whre do you see AUDUSD goin? Technically, hrly AUDUSD seems to breakout of down channel, next resistance at 0.8900?

Thanks!

@Chloe: You aren't the only one with questions. It's a complicated financial world out there, and it can change so quickly. Like with this temporary EUR rally, apparently because of the recent political moves in Europe to rescue the weaker members. However, I see in that FT article that Ashraf pointed to:

"Weve had to face up to the fact that what is now a Greek problem could turn into a European one, the official said.

Were thinking about what we should do if the crisis spills from Greece into other euro countries. So its more about finding firewalls, containing the problem, than principally about helping the Greeks. He added there were no concrete plans as yet. " [A German government official, Germany being the dominant country in the Eurozone].

So it rather looks to me as though the market has overreacted a little, although as Ashraf says somewhere else, they will have to come up with something concrete at some point. Whether it will be enough to stop the Euro falling further again ....

Ashraf, I have been banging that drum for awhile. From the bottom of the economy up, there is a shrinking of profitable spaces for private investment, for many many reasons. But as you note, it doesn't matter if central banks throw money to the banks if they cannot invest it. That is my deflation case (in my academic classroom I should note.. ;). That being said, you've stated you do not see gold heading below $950. Why do you think gold will be able to remain bid up if private lending doesn't seep out into the broader economy?

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