If ever you wanted to get the biggest movement for the smallest amount of selling in the Aussie dollar then right here and now, and over the rest of today and tonight, is the perfect time for a trader ready with an axe to knock the Aussie dollar lower.
Not only do traders get a four-day break for Easter but we also get the release of the most important data point for the month – US non-farm payrolls – tomorrow night, Good Friday. Liquidity is thin and getting thiner.
So, with iron ore tanking and a fair expectation that the chances are high for an RBA rate cut on Tuesday traders don’t want to take on fresh Aussie dollar longs.
Which is why the Aussie is quietly drifting lower in trade today.
At 0.7578 the AUDUSD is just 20 points or 0.26% off the 6 year low the AUDUSD hit in March.
There is no guarantee that it will break. But given that Aussie Yen is also testing important support it won’t take much, many dollars of selling, to nudge the Aussie over the precipice in the next 16 hours of trade before Easter.
That could easily see it trading with a 74 cent handle.
Enjoy the weekend.
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