Aussie Dressed up but where to Go?

Check out the Aussies taking advantage of illiquid market conditions to run stops in their beloved Aussie.

hi ashraf, aud/usd just hit the session high because of the unemployment data, do you think the aud will go strong this week and next week?

James

@Edric Ou, I trade full-time and sometimes overtime in sunny Singapore and happy to connect :-)

@PippedOff, I would love to learn more about the "Goldman Sachs", what is this about, and how exactly they do it. Do you have any blog, book (or considering writing a book)? I will surely buy it / pre-order it.

As for Gold correlations, indeed, late last year was classic when Gold rallied stronger than the AUD/USD. Approx mid-Q3 and early Q4 last year, even EUR rally harder than the AUD against the US. Even at Dubai Crisis announcement on the even of Thanks-Giving last year, AUD came off a lot vs Gold. But then again, some of the equity correlations with EUR / USD also have been off in Dec/Jan timeframe but it seems like they are starting to normalize.

As for job numbers, they have been great numbers for the bulk of the time and this market reaction isn't unusual, and of-late, these upside gains in the Asian sessions could quickly vanish either in EU or US trading sessions.

I hope everyone, including myself will make money on the current rally upwards on the AUD which also helps pick up on overnight interests or off-set against the shorts, and get ready to position on those shorts.

Callum Bir

@PippedOfff, I find the Westpac move interesting also. I have a feeling they don't want to be too far off from NAB's forecast of 0.93 this Qtr and dollar parity my middle of this year. They are probably politically safer in being bullish and change forecast later on additional risk :-)

Callum