January 23rd, 4:29 pm by Barbara Zigah
(eToro Blog) With economic data points lacking today from the Eurozone, some traders have switched their focus to the Australian Dollar, which is rallying higher, trading recently at 1.0563, a session high. Even trader pyruss, who allocates nearly 95% of his trading account to the Euro-Dollar, earlier today opened a position in the AUD/USD pair. However, it was a short position, currently in the red and no where near the stop he set at 1.1000. Pyruss occasionally dabbles in the Aussie, over the last 6 months allocating 2.8%, but his returns on that investment have been minimal at 0.2%.
One OpenBook trader who has done well trading the AUD/USD pair is trader mahmud1979, who closed nearly a dozen long positions to an average gain of more than 7.5%; this trader has several more open longs targeting 1.0646 through 1.0649.
Earlier today, the Australian Bureau of Statistics released producer price data for the last quarter of 2011; on a quarterly basis, the PPI fell to 0.3% from 0.6%, off of analysts’ expectations of 0.5%. On an annualized basis, the PPI was reported at 2.9%, improving from a 2.7% though falling short of expectations of a rise to 3.0%.
The Australian economy remains on solid ground even in spite of some soft data recently. Kevin Rudd, Australia’s former Prime Minister and current Foreign Minister, said that it was all on account of their trading partnership with China, which was critical to Australia’s economic growth. He was not worried about the slowdown in the Chinese economy and in fact complimented their government on its ability to face economic challenges, noting that fiscal and monetary policy is quickly manipulated in accordance with their economic needs.
While the world’s collective economies are reliant on China for growth, to some extent, Australia and New Zealand are even more so. Despite the rally in the Aussie, sentiment among OpenBook traders is predominantly bearish, with a similar trend being seen for the Kiwi traders. Trader robepu earlier today opened several short positions in both the AUD/USD and the NZD/USD, and will need a trend reversal to turn his weekly gains of 106% into monthly gains.
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