Speculation that China may begin easing its economic stimulus programis putting pressure on the AUD USD today. A cutback in spending wouldbe detrimental to the Aussie export market.
Speculation that China may begin easing its economic stimulus program is putting pressure on the AUD USD today. A cutback in spending would be detrimental to the Aussie export market.
A break may be necessary to cool off the technically overbought Australian Dollar. The expected down move may not change the trend to down, but should alleviate some of the overbought pressure.
Earlier this week, the minutes from the last Reserve Bank of Australia meeting indicated that some members expressed reservations about hiking interest rates by 25 basis points to soon. This sent a message that the 50 basis point hike that traders were trying to build into the market may have been wishful thinking.
The first sign of weakness will be a break through .9112. If this market cannot pierce this price with conviction, then look for a resumption of the uptrend.