If I were to tell you that Australia would have a hot inflation report and China would announced a jump in deficit borrowing, you would be excused for rushing to buy the Australian dollar.
AUDUSD daily chart
That looked to be a good trade yesterday and initially on the data release, but since then it’s been the opposite. Chinese markets didn’t cheer the higher borrowing and the CPI pop faded quickly.
AUD/USD is rounding out an outside day after touching a nine-day high earlier. It ‘s down 43 pips to 0.6312 and is the G10 laggard. All of this is happening just above the October lows and that’s an ominous sign.