Aussie recovery looks precarious
After last week’s somewhat unexpected sharp fall in the Aussie dollar (AUDUSD) it has since staged a modest recovery to 0.7060. However this is in its 4th day so far and progress has been slow, and we’ve seen these patterns before. Almost inevitably they lead to an unopposed surrender of the hard work of the previous sessions, which usually takes place over a shortened time frame. The only reason to buy Australian dollars at this time is for short-covering – building a long position here is likely to end in disappointment. Given the background of weaker than expected Chinese PMI it is perhaps no surprise that the Australian dollar is struggling a little bit, and any further good news out of the US is likely to bring further pressure to bear on the already beleaguered Aussie..