By Chris Becker
A core principle of market action is that prices can fall or rise much quicker or further than one can reasonably expect, or beyond what a “technical” indicator measures. The Australian dollar may prove this principle in the coming week even after falling over 6% in the last month.
On Friday night we had the US unemployment data swing to the positive side with an Australian-beating 5.9% level for the first time in six years. This sent the USD soaring, and as a result, the AUD was smashed from its recent short bounce up to the 88 level to new lows at 86.70:
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