Like I said the other day before the employment data … slightly amended …
Here’s the orderboard. Please treat it with extra caution today, particularly in the minutes immediately ahead of and following today’s CPI report from the Australian Bureau of Statistics – the CPI data is an important new data point for the markets, it will influence the RBA at coming monetary policy board meetings 9the next is due February 4) and we all know that markets respond to new data. Those with AUD positions to open, close, and hedge know this too so it is not unusual for them to pull orders (i.e cancel them them) ahead of important data releases. So, with a diminished order book to provide liquidity in the minutes leading up to and following important data points, shifts in supply and demand (and buying and selling) can trigger moves that look large. Not all participants cancel their orders like this, of course, but some do.
Anyway, that’s my long winded way of saying take extra care today. Do with it what you will.
- Sellers 0.8890/00
- Sellers 0.8875/80, stops above 0.8885
- Sellers 0.8845/50
- Some sellers back in again 0.8830, stop loss buyers above
- Buyers 0.8775 (around last nights lows), stops are building below overnight lows too
- Buyers ahead of and around 0.8750, stops again below
- Buyers 0.8700/10
