It has been a one-way street in Aussie trades today. Chinese GDP numbers will be released overnight and the consensus is 7.4% but strong trade numbers on the weekend and these curious comments from Wen suggest it could be significantly higher.
AUD/USD is now up a full cent to 1.0371 on the day to the highest since Oct 2.
The latest round of buying came on the break of the 200-day moving average at 1.0344.
I talked yesterday about the likelihood of a pop to 1.0350 on a break of 1.0290 but the real tell was on Friday when the CFTC positioning data showed AUD long continuing to scramble to the exits. It showed strong selling interest but no corresponding decline in AUD.
In addition, there has been a string of AUD-negative news in the past month, including a surprise rate cut and the Aussie has held it’s ground. When a currency won’t fall on bad news, what do you do?