The recent metals recovery has largely driven the strength in the AUD in recent weeks. Not expecting any bullish sentiment in the USD for some time yet after 8 years of meek growth and inflation. The FED is reaching its limit to guide the economy and I hope it does not ever reach what the BOJ is going through now.
Futures in metals and resources suggest more upward bias for AUD and limited good news from financial releases in the US may limit any upwards momentum in the USD in the near term.
Should this metals recovery continue - AUD will continue to be bullish against all pairs. We will see some caution from the markets and see a corrective retrace downward maybe around .79 area as China has been stockpiling iron ore and dumping steel around the world. Despite there being some major infrastructure projects coming up in ASEAN countries backed by China, dumping and quantity of stockpiles does not justify
China CPI coming and likely to have an impact on AUD - expecting a volatility spike down before resuming upward trek. looking to buy on dips for targets above 0.780
Futures in metals and resources suggest more upward bias for AUD and limited good news from financial releases in the US may limit any upwards momentum in the USD in the near term.
Should this metals recovery continue - AUD will continue to be bullish against all pairs. We will see some caution from the markets and see a corrective retrace downward maybe around .79 area as China has been stockpiling iron ore and dumping steel around the world. Despite there being some major infrastructure projects coming up in ASEAN countries backed by China, dumping and quantity of stockpiles does not justify
China CPI coming and likely to have an impact on AUD - expecting a volatility spike down before resuming upward trek. looking to buy on dips for targets above 0.780