Despite over 2 % drop since Monday due to China economic outlook, PMI and reduced export of iron ore announced by President of BHP , I’m still positive about Aussie Dollar. In response to slowdown in BHP’s iron ore exports Australian Bureau of Resources and Energy Economics expressed a very positive view with anticipation of energy earnings boost over mid-term and increase export of iron for next few years. See attached graph.
In my view market is overreacting President of BHP comments and PMI event and expect to see lifting up AUD/USD and AUD/JPY pairs pretty soon which will create buying opportunities near key technical levels.
For technical Forex setups please visit my Forex Strategy section.