Chinese Fears and Copper Meltdown Hit AUD/USD and EUR/AUD
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"Red sky in morning, sailor's warning" the old saying goes. A look outside of our New York offices gives an ominous warning to seafarers and traders alike as commodity prices dive around the globe. The cause? A copper liquidation (commonly used as collateral in China) amid a series of low-level defaults.
Fear may be spreading as the forex market's main proxy for China, the Australian Dollar, is under a great deal of pressure. While my initial long AUDUSD position from 0.9090 was stopped out at 0.9000 for a loss, the EURAUD position from 1.5275 is in the money with EURAUD trading above 1.5500.
--- Written by Christopher Vecchio, Currency Analyst
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.