A trade set-up in the AUS/USD market?

That the 'Aussie' has come under pressure from China is common knowledge. That's great for swing traders, says John C Burford.

The 'aussie' has recently come under sustained pressure and it's not difficult to see why.

China's economy is slowing, so demand for Australia's natural resources is expected to drop with a knock-on effect on the currency. China is Australia's biggest customer.

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(Contracts of AUD 100,000)Row 0 - Cell 1 Row 0 - Cell 2 Row 0 - Cell 3 Open interest: 184,822
Commitments
12,62575,3461,684154,58371,806168,892148,83615,93035,986
Changes from 08/06/13 (Change in open interest: -17,063)
-3,941-17,999430-12,4197,040-15,930-10,529-1,133-6,534
Percent of open in terest for each category of traders
6.840.80.983.638.991.480.58.619.5
Number of traders in each category (Total traders: 92)
21361321234866Row 8 - Cell 7 Row 8 - Cell 8

John is is a British-born lapsed PhD physicist, who previously worked for Nasa on the Mars exploration team. He is a former commodity trading advisor with the US Commodities Futures Trading Commission, and worked in a boutique futures house in California in the 1980s.

 

He was a partner in one of the first futures newsletter advisory services, based in Washington DC, specialising in pork bellies and currencies. John is primarily a chart-reading trader, having cut his trading teeth in the days before PCs.

 

As well as his work in the financial world, he has launched, run and sold several 'real' businesses producing 'real' products.