by Chris Becker
The anemic retail sales figures this morning which followed a good Chinese manufacturing PMI print has cracked the Aussie below 87 cents vs the USD again:
Its now sitting on crucial support – just above the January lows of this year and near its four year low. Given the RBA meets on Tuesday next week, we could be at a critical juncture but I would caution theres a bit too much bearishness in the air (I’m going to cover my intraday short soon as its way oversold, but leave longer term positions open).
Most funds would be happy with this level and not any further below:
That could all change this afternoon if London traders in the City get a bit antsy. Theres a possible support level at 84 cents, but thats a bit tenous given the long timeframe and markets are likely to push through as there’s daylight below.
But as someone commented earlier today, I’d be more worried about the almost totally foreign owned Aussie bond market if that level is broken.
Can you say capital flight?