Aussie Backs Up Into Day To Day Pattern Sell Zone
The Australian Dollar, propelled by better than expected job gains, rallied sharply today, leaving AUDUSD, and the CME’s Australian Dollar futures contract at the top of our Day to Day Sell Zone — see chart. Given that important Day to Day pattern is still bearish, today’s rally coould be an opportunity to sell a rally in an overall downtrend.
The Chinese GDP figures at 10PM EDT this evening will loom large for the Aussie however, and may give us a good look at how strong resistance is at that 104-50 level. Markets are expecting an 8.4% uptick for China’s economic growth and a better than expected number with Aussie still holding below 104-50 would be seen as a sign of weakness for the currency.
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