4 Sep 2013
Flash: AUD/USD: A Short Covering Boost – TD Securities
FXstreet.com (London) - Research teams at TD Securities said the AUD is notably outperforming.
Key Quotes:
“AUD is notably outperforming.for the second day after an upside surprise on Australian GDP added to yesterday’s positive tone from a not-so-dovish RBA.”
“The NZD has also been lifted in sympathy, with both Antipodeans up over 1% overnight”.
“In view of the fact that the speculative market has been very short positioned lately (CFTC data on Friday showed net shorts near record level), we suspect short covering has helped exaggerate the move for AUD at least”.
“On the charts AUD/USD is now approaching the neckline of a head & shoulders reversal that comes in at 0.9177 (see below), a break of which would target about four big figures higher”.
“For EUR/AUD, a follow through on a double top would target five big figures lower”.
Key Quotes:
“AUD is notably outperforming.for the second day after an upside surprise on Australian GDP added to yesterday’s positive tone from a not-so-dovish RBA.”
“The NZD has also been lifted in sympathy, with both Antipodeans up over 1% overnight”.
“In view of the fact that the speculative market has been very short positioned lately (CFTC data on Friday showed net shorts near record level), we suspect short covering has helped exaggerate the move for AUD at least”.
“On the charts AUD/USD is now approaching the neckline of a head & shoulders reversal that comes in at 0.9177 (see below), a break of which would target about four big figures higher”.
“For EUR/AUD, a follow through on a double top would target five big figures lower”.