Has it come time again to sell into the downtrend of the AUDUSD? Even the full realisation by traders that they had previously priced in too much premium into the USD did not serve to provide any form of support to counter the erasing of value in the Aussie. Much will lie in how the numbers will be reading on Monday's data releases coming from the world's most populous nation where its (i) GDP; (ii) Fixed Asset Investment; (iii) Industrial Production; (iv) Retail Sales and (v) PPI numbers will be revealed, as concerns over China weighs down on this currency.
Will there be a cooking of the numbers? And how will traders react to it? Technically the downtrend is in continuation, and hence, it could be a smart move to keep shorting at new highs. But has the market already factored in bad data being released??
The AUDUSD was much weaker than the USD in the aftermath of the speech by Federal Reserve Chairman Ben Bernanke, so much so that in the following day, it found relatively no support level that could withstand the selling pressure that came in, even when the USD was still weak. When the USD finally found some support, the AUD crashed.
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