Since the RBA cut rates last week AUD pairs have enjoyed a real reprieve
A combination of traders being caught short, firmer gold price and yet another re-assessment of the timing on US rate hikes have all added to a strong week of gains for the aussie $.
AUDUSD faced strong importer-led offers into 0.7700-20 and that had been a decent resistance point but with the retreats getting shallower and shallower and therein laid the clue.
One more shove was needed and the pair needed little excuse today to take full advantage to chew through then accelerate to 0.7741 with more offers waiting at 0.7750.
AUDJPY and GBPAUD also prime movers and we've seen solid AUD gains there too. AUDNZD comes into play later with the RBNZ interest rate decision.
I was speaking to one of our readers last night whilst seeing my football team get slapped ( Hi Luke!) who said he was long of AUDUSD and happy with it while I was doubtful as to the extent of further gains. As ever though I did come out with the "ours is not to reason why, ours is just to sell n buy" mantra where any trend is indeed your friend.
Some/most times we don't have to understand why a ccy moves as it does. No one said FX ever had a rational base. Be warned, and go with the flow.
Right, I better head off now I've used my clichéd mantra quota for the day!
