AUD/USD to dip below 0.7675/85 on a failure at the 0.7740/50 zone – ING
|AUD/USD is set to experience a sharper correction lower if the pair fails to surpass the 0.7740/50 area – which is currently tacking. The slide in Iron Ore triggered by Chinese policymakers also warrants some caution, as reported by ING.
Iron Ore slump suggests caution
“After surging 10% on Monday, Iron Ore is now falling 10% today. Driving this move seems to be the intervention of Chinese policymakers, wary that a surge in commodity prices could undermine the recovery. Here, officials have raised margins and imposed fees on steel trading and made it clear that speculators will be frowned upon.”
“The synchronised recovery in global demand suggests the rally in commodities is an enduring one. But for the short-term, corrective forces are at play – which could take its toll on the AUD – a key exporter of iron ore.”
“Failure of AUD/USD to regain the 0.7740/50 area today, warns of some potentially sharper corrective losses under 0.7675/85.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.