I wrote it in My Journal forThis Pair ( Just My Foot Prints right there :D ), it was about couple years ago, The analysis for this pair,.
AUD/USD is very clear and for sure,
EUR/AUD, GBP/AUD etc they have a very strong correlation and have to move to the other direction. No Matter what's The News keep coming Up right now, There is a Pair Movement's rule.
Aussie dollar slumps to 3-1/2-year low after jobs data
The Australian dollar tumbled to
its lowest level since mid-2010 against a firmer U.S. dollar on
Thursday, after a surprise fall in employment reawakened the
possibility of another cut in interest rates.
The Aussie fell as low as $0.8777 in early trading, with
trading volumes high, and was last 1.5 percent lower at $0.8803
. Its next target to the downside will be the $0.8770
hit in August 2010, said one trader.
The Aussie was also 1.1 percent down against the New Zealand
dollar at $1.0571, its lowest since the end of 2005,
with talk among traders of selling by large hedge funds.
Australian employers shed jobs at the fastest pace in nine
months in December, with full-time positions hit hard in
particular, contrary to economists' expectations of modest job
gains.
Investors reacted by reviving the prospect of another cut in
interest rates from the Reserve Bank of Australia, which has
been signalling it would rather not ease again from the current
record low of 2.5 percent.
The Aussie has been a big target for manager-driven hedge
funds, notably CQS founder Michael Hintze, who have focused on
central bank governor Glenn Stevens' wish for the currency to
weaken, as well as signs of weakening demand for its natural
resources.
Computer-driven hedge funds, meanwhile, have also latched
onto the currency's slide.
"You've had the unemployment data overnight, while the
strength of the (U.S.) dollar suggests money is moving towards
the dollar and away from the commodity currencies," said Richard
Perry, analyst at Hantec Markets.
He said that while technical factors suggest there could be
a small bounce in the Aussie, it could encounter resistance
between $0.8820 and $0.8863.
"I'd be using that technical rally as a chance to sell. It
does not look good," he said.
Volumes were much higher in euro/dollar, with the single
currency gaining 0.04 percent at $1.3608 ahead of euro
zone inflation data later on Thursday.
The U.S. dollar itself was up after data this week held out
hope that Friday's non-farm payroll data - which shocked markets
with a reading well below forecasts - was an anomaly and did not
signal the economy had lost steam at the end of last year.
Data on Wednesday showed producer prices recorded their
largest gain in six months in December, yet there were few signs
of any sustained price pressures. The figures came a day after
U.S. retail sales rose and a core spending gauge posted a big
jump.
Investors were encouraged to go long on the greenback, again
betting the Federal Reserve can continue to unwind its massive
bond-buying stimulus over 2014, a move that would likely push
bond yields higher and attract investors back.
The dollar was 0.2 percent higher against the yen at 104.76
yen, within striking distance of a five-year peak of
105.45 yen scaled at the start of the year.
But some traders said there were sizable offers above that
level, possibly capping the dollar's gains in the near term.
Traders also said U.S. consumer inflation data due later on
Thursday would be closely watched.
"A strong inflation print may encourage the Federal Open
Market Committee to take a more aggressive approach in
normalising monetary policy as the central bank sees a more
robust recovery in 2014," said David Song, analyst at DailyFX.
"With that said, a positive CPI print may spark a bullish
reaction in the USD, but the dollar may face a larger decline
over the near-term should the data print fall short of market
expectations."
The dollar index was up 0.1 percent at 81.078 back to
the highs seen last Friday. The dollar continued its strength
against the Canadian dollar, rising 0.1 percent to C$1.0946
, near a four-year high of C$1.0992 hit on Wednesday.
Also helping the U.S. dollar, one of the Federal Reserve's
most outspoken doves, Chicago Fed President Charles Evans, said
he backed a continued wind-down of the Fed's bond-buying
programme and could even see bigger cuts to the programme if the
economy strengthens.