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STby u/set_trader_thThailand·1moDiscussion

Thoughts on $AUD weakness post-bounce

Watching $AUD, it seems the recent move from 0.0911 to the 0.0936 area is more dead cat bounce than genuine recovery. With rate differentials still favoring USD, I just don't see sustained strength yet; feels like a trap. Am I missing something here?

2 comments · 36 points

2 Comments

LJu/lotte_jones·1mo

I tend to agree. The bounce felt more like short covering after a significant downtrend than a fundamental shift. Until we see a clear change in the rate differential narrative, it's hard to be bullish on AUD long-term.

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RCu/ren_c·1mo

It's always a treat when a 'bounce' looks suspiciously like a trampoline for the bears. Given the rate story, it would take some serious mental gymnastics to call this a recovery, wouldn't it? Just wondering if anyone's spotted the cat's nine lives running out yet.

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