Back
15 May 2015
AUD/USD breaks 0.8060 support, en-route to 0.8030
FXStreet (Bali) - The change in dynamics observed over last 24h continues to see the sell-side engaged in the Aussie, taking the rate from 0.8090 down to the mid 0.8040s, breaking a steep bullish trendline off May 12 in the process.
Market sources report that macro hedge funds have been active sellers at hefty levels above 81 near 0.8120/8140. Also worth noting that in the last 24h, iron ore has been under pressure, which might have weighed on the Aussie, even if au-us 2y yield differentials still support bull tendencies in AUD/USD.
Note there is 1.3bn option expires at 0.80 today. Also, it is important to highlight recent bearish directional moves vs bullish compression, an occurrence that suggests the market is starting to adopt more bearish credentials near term, potentially targeting 0.8030 ahead of 0.80 now. Selling into higher liquidity appears to be the strategy most market participants may engage in today.
Market sources report that macro hedge funds have been active sellers at hefty levels above 81 near 0.8120/8140. Also worth noting that in the last 24h, iron ore has been under pressure, which might have weighed on the Aussie, even if au-us 2y yield differentials still support bull tendencies in AUD/USD.
Note there is 1.3bn option expires at 0.80 today. Also, it is important to highlight recent bearish directional moves vs bullish compression, an occurrence that suggests the market is starting to adopt more bearish credentials near term, potentially targeting 0.8030 ahead of 0.80 now. Selling into higher liquidity appears to be the strategy most market participants may engage in today.