Aussie strength questionable
source: Timingcharts.com
I read this interesting article in the Financial Times this morning. It may signify an imbalance in the Aussie Dollar (AUD).
Concerns over Aussie Dollar
Main factors suggesting a move, at least temporarily, to a short Aussie and long USD or JPY bias may be:
- Falling overseas demand
- CRB index diverging negatively against AUD
- AUD failed to strengthen on positive domestic data
Take a look at the article and judge for yourself what type of bias is sensible during this time, keeping in mind that markets may pick up after the US Labor Day holiday. Remember not to catch falling knives. If you believe in this theme, let it play out a bit first- you can still get in early.
