Despite Australian employment and China inflation both beating expectations, Australian Dollar bulls struggled to hang on to any gains. AUDUSD spiked 50 pips, only to give back 35 pips within minutes and AUDNZD spiked a mere 34 pips.
With market sentiment weighted down by Greece and China, the Australian Dollar struggled to lift itself off of current lows despite positive news. His, in my view, makes the Aussie Dollar vulnerable to further losses, particularly against the Japanese Yen. JPY crosses are benefitting from safe haven flows and the Australian Dollar, a risk currency, is getting dumped as key commodity prices such as Iron Ore and Gold continue to decline.
This week saw AUDJPY break a key trendline from the 2009 and now sits below the Y90 level so the near-term and medium-term outlook appear to be grim.