Optimism from Australia's central bank drove Chinese shares sharply higher overnight, with investors looking to the Aussie statement as a proxy for bullishness on the mainland economy.
Squawk / 07 May 2015 at 18:08 GMT
Head of FX Strategy / Saxo Bank
AUD Traders: Don't forget tonight's RBA Monetary Policy Statement, to be released at 0130 GMT. There is two-way risk on this release as it may confirm what the market perceived as a firm shift into neutral guidance from the RBA's Stevens at this Tuesday's meeting, despite the actual rate cut.Meanwhile, the flipside risk is that the market put too much emphasis on this perceived shift and that the statement contains a pointed phrase or two on the exchange rate or other comments on guidance as the RBA disapproves of how the market interpreted Stevens' comments.

Even after the reaction, we'll have to contend with the implications of the US employment report later in the day for AUDUSD, which looks ready to pivot strongly one way or another into Friday's close with these two big event risks looming. The bears will want to see a close below 0.7800 to boost the technical argument in favour of a test of the 0.7533 lows. Bulls will hope for weak US payrolls and a close back above 0.8000.
TrevorC TrevorC
yes agreed john that these are the two possibles for AUDUSD ..... but whats yours view on which way it will go? that wld help . thanks
colinwbarnes colinwbarnes
going down to 7780 to 7800 imho


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