This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
This spike clearly presented a great opportunity to short the pair at better levels given that the fundamentals for the AUD continue to point to the downside.
After the set of RBA minutes we received earlier in the week, it’s clear the central bank’s easing bias will keep the local currency on the back foot. Additionally, Governor Glenn Stevens speaks at a luncheon today and, while it’s not clear what he’ll speak about, you can never rule out some policy hints nor AUD jawboning.
Key support for AUD/USD is in the $0.7600 region and, if we fail to hold on to that, the pair could extend its losses. As a result, momentum traders could consider fresh shorts on a break below $0.7600.