Aussie Dollar Rally May Be Sunk by China Ratings Cut: Chart

Why Moody's Downgraded China to A1

AUD/USD’s spike above the downtrend from March was looking like a false break before a China ratings cut to rub it in. It also coincides with overextended short-term momentum readings and an options skew that is close to neutral, suggesting that traders were not positioned for any near-term shock. For more market commentary, see the MLIV blog.

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