Intraday Market Thoughts

Aussie RBAd, Euro Stable, Gold Drops

by Ashraf Laidi
May 7, 2013 17:59

The Aussie's decline dominated trading as the RBA surprised most economists through a 25-bp rate cut, dragging rates to 2.75%--their lowest since 1960. Our Premium Insights may not have predicted the rate cut, but Friday's special Premium note (following Aussie's Friday rebound) said the following “We are reaffirming our [Apr 17] shorts in AUDUSD despite the Friday afternoon recovery, which is largely a reflection of soaring equities commanding a rally in FX risk appetite at the expense of the USD and JPY following robust US jobs report. Please see our 3 new charts on AUDUSD below  and the trading note under AUDUSD section”. Indeed, the triple AUDUSD charts from Friday confirmed the shorts from Apr 17 due to the negative sentiment convergence in the daily, weekly and monthly charts. The euro's recovery remains within range despite gold's tumble to 1440s. There are 2 EURUSD trades in the Premium Insights, existing since Thursday's ECB meeting. See our latest Premium Insights for the rationale and methodology of trades and charts.

 
 

Latest IMTs