Open trading account 
Yesterday if you where trading or at least watching AUD pairs, was a pretty intense day. Aussie plunged 95 pips in just 4 minutes after some comments from RBA governor Stevens hit the market. RBA's Stevens said that Australia needs AUD/USD closer to an 0.8500 exchange rate. Basically this was an aggressive verbal intervention from RBA governor who said that lower aussie is preferable to rates to help the economy.
The only reason why he wants lower aussie is so he doesn't need to lower rates again, which are already at historic low point. My personal opinion is that RBA maybe worried that aussie will get to strong with global growth next year.
This dramatic move in AUD had a strong impact on my short EUR/AUD position as well, in just few minutes I was caught 100 pips underwater and than by the end of the day it has moved against me more than 200 pips. But my stop loss was far away not to be hit by the market, at least by now. I wasn't expecting this spike in price to hold, actually at that moment I thought it will fade away, I still think the market will turn just that it need more time to digest the new information.
Although this move has erased more than half of my profits, I'll watch closer the market action because I still think it will turn back or at least it will give me the chance to minimize the loss. I hope I'll be smart enough to know were to cut back my position but it's all about the timing.
Best Regards,
Daytrader21
The only reason why he wants lower aussie is so he doesn't need to lower rates again, which are already at historic low point. My personal opinion is that RBA maybe worried that aussie will get to strong with global growth next year.
This dramatic move in AUD had a strong impact on my short EUR/AUD position as well, in just few minutes I was caught 100 pips underwater and than by the end of the day it has moved against me more than 200 pips. But my stop loss was far away not to be hit by the market, at least by now. I wasn't expecting this spike in price to hold, actually at that moment I thought it will fade away, I still think the market will turn just that it need more time to digest the new information.
Although this move has erased more than half of my profits, I'll watch closer the market action because I still think it will turn back or at least it will give me the chance to minimize the loss. I hope I'll be smart enough to know were to cut back my position but it's all about the timing.
Best Regards,
Daytrader21
