After a relentless few days of selling and as Australian traders head to the pub for a well-earned drink, the Aussie dollar is heading into the danger zone that is Friday European and particularly late US trading.
Already today, traders who thought it might be time for a bounce took the Aussie back above 91c only to find the sellers were lurking, a full cent below where they were yesterday.
So as European traders put their feet under the desk it looks like they haven’t given up all hope and are buying. But as we’ve seen over the past two days, including this morning, sentiment has changed and rather than “buy the dip” the market seems to want to sell the rally.
This is a dangerous change for a market still “top heavy” on Aussie dollars. It’s the classic set-up for a weekend smash.
Freaky Friday is here. We’ll be watching.