AUD/USD Technical Analysis October 6, 2011

AUD/USD rose on Wednesday as traders piled into the “risk on” trade. The rumors out of the EU suggest that the various countries may be working on a coordinated effort to recapitalize the banks, and that it could be coming soon. The ADP employment numbers suggested that perhaps the Non-Farm Payroll numbers on Friday should be a bit more robust than thought previously. However, it should be noted that most of this is simply rumor, and more than likely short covering rather than massive buying at this point. Until Friday’s employment number comes out this pair will be suspect on rallies.

Written by FX Empire