Tuesday, 30 July 2013
The RBA steps in
After 2 weeks of back and forth for the AUDUSD, coupled with narrower and narrower trading volumes and trading ranges, largely due to confusion over the Federal Reserve's policies and the expectations for its future moves, the inevitable has finally happened. I had always said that the RBA still feels that the AUD is overvalued from its perspective. Finally, the traders are pricing that into the market. This clue was derived from the following article of the Minutes of the RBA board on monetary policy - http://www.rba.gov.au/monetary-policy/rba-board-minutes/2013/02072013.html
Traders only took into consideration then that the RBA was staying put with its then stance of being satisfied with the monetary policy, but that was only temporary as we can now see.
Technical trading always provides a partial picture for traders to take advantage of the price moves in the markets, but the big money is always made from fundamental trades?
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