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15 Jul 2013
AUD/USD, risk of buyers re-emerging on China GDP re-pricing
FXstreet.com (Barcelona) - On the back of a 'not so bad' China GDP number, if one is to consider the latest talk down by officials, the AUD/USD exchange rate is presently hovering around the 0.91 handle, where offers keep buyers struggling from building on further gains.
Market likely to price-out Chinese GDP, AUD positive
One of the theories behind last Friday's sudden sell-off in the AUD/USD was attributed to low-volume/liquidity conditions, as pessimism mounted about today's China GDP missing the 7.5% official headline.
The pricing on a slower growth scenario by China had been triggered by China's FinMin stunning remarks last week, noting he was confident in achieving a 7% growth rate this year, in other words, a 0.5bp below the 7.5% approved at the National People‟s Congress in March.
Amid the consternation, the 7% figure was clumsily denied by Xinhua state-run agency over the weekend, saying China's Finance Minister said 7.5%, with very few buying into the clear attempt of propaganda.
AUD/USD, more participants on dips?
Since the market remains heavily short the Australian Dollar, risks of a stop loss squeezing run remains significantly high as large bids continue to be reported guarding the 0.90 round number. If one throws into the mix the potential price-out swings that are to come until the origins of last week's flash decline at 0.9130, looks like a more friendly environment for buyers to be slightly more assertive by adopting dip-buying strategies towards the AUD/USD. Up until now, the 0.9070/85 - intraday level - looks like the technical level where an increase in buying participating may take place, followed by 0.9055 -swing low-.
Market likely to price-out Chinese GDP, AUD positive
One of the theories behind last Friday's sudden sell-off in the AUD/USD was attributed to low-volume/liquidity conditions, as pessimism mounted about today's China GDP missing the 7.5% official headline.
The pricing on a slower growth scenario by China had been triggered by China's FinMin stunning remarks last week, noting he was confident in achieving a 7% growth rate this year, in other words, a 0.5bp below the 7.5% approved at the National People‟s Congress in March.
Amid the consternation, the 7% figure was clumsily denied by Xinhua state-run agency over the weekend, saying China's Finance Minister said 7.5%, with very few buying into the clear attempt of propaganda.
AUD/USD, more participants on dips?
Since the market remains heavily short the Australian Dollar, risks of a stop loss squeezing run remains significantly high as large bids continue to be reported guarding the 0.90 round number. If one throws into the mix the potential price-out swings that are to come until the origins of last week's flash decline at 0.9130, looks like a more friendly environment for buyers to be slightly more assertive by adopting dip-buying strategies towards the AUD/USD. Up until now, the 0.9070/85 - intraday level - looks like the technical level where an increase in buying participating may take place, followed by 0.9055 -swing low-.