September 27, 2012
Make that three! AUD/USD extended its losing streak for the third day in a row as it closed at 1.0360, 25 pips down from its 1.0380 day open price. AUD/JPY had its share of losses as it ended the day at 80.52. Will the Aussie keep losing today or does it have a chance to rebound?
Since Australia didn't release any economic figures yesterday, the Aussie was left vulnerable to risk sentiment. Unfortunately for the higher-yielding Aussie, U.S. economic data came in weaker than expected yesterday and this was enough to keep risk aversion in the markets.
There are no reports due from the Land Down Under today, which means that risk sentiment could still be at the helm. Bear in mind that the U.S. has a few red flags on tap while euro zone is waiting on Spain's budget release and, if these events turn out worse than expected, we might see another Aussie selloff. Stay on your toes!
"The only cable I watch is the pound baby."