Macro Afternoon

by Chris Becker

The dreaded Monday morning gap affected major currencies on the open, with the Aussie dollar gapping down following the well hung election over the weekend. Gapping nearly 50 pips it has since erased those losses – and more, getting up to the 75 handle against the USD, with similar moves against Yen and Sterling.

This puts it right on my technical level for a probable break higher on the four hourly and daily charts, but requires another catalyst to do so, and that may come with the RBA meeting tomorrow. I would suggest however that the mandarins at Martin Place will remain meek, erasing most of this gap-bounce come tomorrow afternoon.