Hopes for a near term Aussie bounce are looking dimmer – from today’s Daily Pfennig:
In Australia overnight… Retail Sales slowed for a second month only advancing .2% in October, although September’s sales were revised upward to .7%, this October reading has put a lid on any rate increase before year-end… The Reserve Bank meets tonight to discuss rates, and at one time I held out hope for another rate hike before year-end… Unfortunately, this Retail Sales report probably put a damper on that rate hike, now, at least…
This won’t help the sagging A$ either… With Carry Trades being unwound, the high yielders get taken to the woodshed and beaten like a rented mule… And with no support from the Central Bank, rate hike wise, the A$ will probably have to remain in the woodshed even longer…
If the Carry Trades are truly being unwound, and it’s not another false dawn, look for yen and Swiss francs to become the last ones on the roster but number ONE in the hearts of the fans!
The Aussie chart does not look great either, but there does appear to be some support around the .8650 mark. As much as it hurts to take such a large bath on one position, it will likely be time to sell if it drops below the support levels. Contracts are trading at .8719 as I type this.
Recent Comments