Daily Insight: Downside Pressure On AUD?
Matt Simpson | Sep 15, 2014 03:40AM ET
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With a lack of any 'red' news we can expect moves to be fairly limited, albeit any surprises resulting in market shocks. Overall the markets focus will be on key events later this week from US and UK, so sticking with shorter holding times may be the sensible way forward as we approach these events.
TECHNICAL ANALYSIS:
AUDUSD: All eyes on 90c
With poor data from China over the weekend we saw AUD gap down to 90c and Asia trading break below this key level. Taking into consideration that neither Europe or US have been able to react to China news (over the weekend) it does put further downside pressure when these markets open later.
However also keep in mind comments made above about the potential for moves to be limited as we approach key events later this week.
USD/CNH: One for your watchlists
As we approach FOMC meeting in the middle of the week we may continue to see Greenback rise against the Chinese Renminbi. Keeping in mind that traders have been positioning themselves long on the Majors, USD/CNH may provide the opportunity to hop on board 'low hanging fruit' should the FED deliver with Hawkish forward guidance.
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