Aussie Dollar Flash
Seller exhaustion was apparent in the lead up to the FOMC minutes, as shorts continued to unwind. While selling pressure has re-emerged this morning at .7620-.7625, one does get the sense that the FOMC minutes was the last kick of can for the Aussie bears heading into 2018. And given the dovish Fed overtones, for those fortunate to have been riding shorts since the convincing downtrend emerged in mid-Sept, traders will now be more inclined to cover shorts which should temper any near-term downside momentum. And while commodity correlations have weakened of late, Dalian Iron ore is up over 3.5 %, as the Pboc continues to inject cash in an attempt fine-tune their deleveraging act, it still underpins the Aussie dollar sentiment to a degree.
