AUD/USD Trade

The Aussie dollar is currently at the 200 MA on the daily which is acting like support. A close below this might see it drop even more.The more than dovish remarks that hinted a reduction in the interest rates by more than 138 basis points has seen the pair drop more than 700 pips from its original highs against the dollar.

Gold on the other hand as i had hoped will be the major beneficiary of all the confusion.The precious metal is now trading at all time highs of 1710 as i write on this blog and may continue higher until the dust settles. The CHF pairs are also seing more rallying into the downside with an increase in risk appetite as it is the safe haven currency of choice. The other safe haven currency the Yen has seen a dramatic bearish momentum in the Yen pairs since last weeks intervention and is now trading much lower against the USD.