Do the Aussies read the data upside down?
Skerdian Meta • 1 min read
Yesterday we saw some broad demand in the Australian Dollar and the New Zealand dollar. They gained nearly 100 pips against the Buck and advanced against most major forex pairs. But, in the evening NZD/USD approached the 200 smooth moving average and we saw that it was having trouble around it. Not only couldn´t it bear that moving average, but it wasn´t able to even touch it.
So we decided to open a sell forex signal around those levels hoping at least for a retrace down since it couldn´t go up. Well, we woke up this morning and saw the NZD and the AUD about 100 pips lower. According to logic, there should have been some disappointing data from the land of crocodiles. But no, I just looked at the economic calendar and the inflation numbers, which were the only economic data release from Australia, were positive and above expectations. Either the Aussies read the data upside down as they do with many other things or the forex market haven´t read it correctly.