OK, let’s take this thing from the top:
- Offers 0.9000/10
- Offers 0.8920 through 0.8935, some trading stops in this range too.
- Stops and new shorts to sell below
0.8775typo, should read 0.8875 - Bids
0.8750/60should read 0.8850/60
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The NZD got smashed lower this morning on the back of the tainted milk news over the weekend, and part of this NZD sell-off was AUD/NZD related (AUD buying/NZD selling). The buying in the AUD leg, though, was countered with good size AUD sellers, so despite the AUD market being positioned very short there are still fresh sellers in the market. Sentiment is still strongly negative.
RBA meeting tomorrow, if you need a reminder, at which the overwhelming expectation is for a 25 basis point rate cut. Is it ‘priced in’? I believe it is, every man and his dog expects it (not that I’ve directly spoken with too many dogs about it, I’ll admit). So, does it rally after the decision tomorrow? Tough call, like I said, there is still fresh selling entering the market. Comments, as always, welcome…
ps. It is a ‘bank holiday’ in New South Wales today, which means the Sydney market is a little thinner (liquidity-wise) than normal.
