AUD/USD below 0.7000 and China taking the headlines in 2016

By FXStreet FXStreet (Guatemala) – While the Fed and US dollar have taken a back seat in the market’s popularity, this Asian session will yet again be dominated by China. There is nothing to come out data wise today, nothing scheduled anyway, but markets will be keeping to an ear to the ground and trying to pre-empt what the Chinese authorities next move will be.

We have seen the start of 2016 that came with a crisis in China unfolding and ricochets across the financial markets matrix, supporting the Yen and a net long dollar in the CFTC positioning data for the first time since the early days of Abenomics back in October 2013, as noted by Kit Juckes, economist at Societe Generale. That obviously means bad news for AUD/USD, AUD/JPY.

AUD/USD reverses in first week 2016

The Aussie had made a decent recovery leading into the end of 2015, but that all has been totally reversed and we are now trading well below the psychological 0.7000, that is hardly surprising considering the fundamentals that almost seemed to have been ignored since August last year while markets preferred to be on the right side of the RBA and their stubborn bullishness about the prospects …read more

Source:: FX Street