There will come a time to buy AUD/USD but I don’t think it’s right now.
The China concerns are overblown but the pair is down sharply today and it comes on a day when CPI was far stronger than expected. The technical look is the top reason to be worried and it’s a simple one. The market is overbought, it stalled at resistance near 0.9800 and there is a big, bearish engulfing candle on the chart.
The last engulfing candle I warned about was in USD/JPY last week, and it proved to be a valuable signal — hitting the 200dma target today.
