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Bearish Downside Favored As AUD/USD Lacking Upside Push into 1-Yr Resistance
2016 has been a confusing year for the Australian Dollar. Most of the uncertainly lies around how negatively impacted the Australian Dollar could be by China’s turbulence as they transit from a production based economy to a consumption based economy. However, the confusion now remains around the potential of capital controls so that the PBoC doesn’t have to spend as much of the FX reserves as they have trying to support the currency from too much volatility. Recent readings from the PBoC show drawdowns of their reserves to be averaging a little north of $100B per month. Should China work to prevent capital ... (full story)