6 Jan 2015
AUD/USD: Short squeeze reaches 0.8150
FXStreet (Bali) - Bloomberg is carrying a story, noting that China is planning to accelerate a $1 trillion stimulus package in projects to spur growth in the country, presumably helping AUD/USD to squeeze higher after a positive Aus trade data, reaching its highest at 0.8150.
From Bloomberg: "China is accelerating 300 infrastructure projects valued at 7 trillion yuan ($1.1 trillion) this year as policy makers seek to shore up growth that’s in danger of slipping below 7 percent. Premier Li Keqiang’s government approved the projects as part of a broader 400-venture, 10 trillion yuan plan to run from late 2014 through 2016, said people familiar with the matter who asked not to be identified as the decision wasn’t public."
Having traded above the 200/100 HMA’s, Jim Langlands, Founder at FXCharts, notes: "If we do get a run to the topside, further strength could take the Aud back to 0.8200/15. I don’t really see it happening, although it would provide a decent sell opportunity if we were to get there, with a stop placed above short term trend/Fibo resistance at around 0.8240."
From Bloomberg: "China is accelerating 300 infrastructure projects valued at 7 trillion yuan ($1.1 trillion) this year as policy makers seek to shore up growth that’s in danger of slipping below 7 percent. Premier Li Keqiang’s government approved the projects as part of a broader 400-venture, 10 trillion yuan plan to run from late 2014 through 2016, said people familiar with the matter who asked not to be identified as the decision wasn’t public."
Having traded above the 200/100 HMA’s, Jim Langlands, Founder at FXCharts, notes: "If we do get a run to the topside, further strength could take the Aud back to 0.8200/15. I don’t really see it happening, although it would provide a decent sell opportunity if we were to get there, with a stop placed above short term trend/Fibo resistance at around 0.8240."