OpenBook’s Aussie Bulls Buy on Dip as China’s Trade Balance Surprises
February 10th, 11:13 am by Barbara Zigah
(eToro Blog) China’s General Administration of Customs earlier reported that January’s trade balance rose to a 27.30 billion surplus from December’s 16.52 billion, well above the consensus call for a decline to 10.40 billion. With China being Australia’s largest export partner, the news struck the AUD/USD pair almost immediately, which fell from a recent 6-month peak of $1.0845 to 1.0715 as of this writing; sentiment on OpenBook favors bulls by a 2-to-1 ratio as traders look to buy at the dip. Also weighing on the commodity-linked currency is growing doubts that Greece will be able to survive given the harsh austerity demands required as a prerequisite to the next bailout loan.
Trader nurmohd, who just started trading on OpenBook, has successfully executed 15 trades in the pair, and his 100% allocation to the Aussie-Dollar has returned 110% profit. In the past 24-hours this trader has opened and closed both longs and shorts, with each trade returning a profit of no less than 92% with the highest trade returning 126%. Whether this string of successes could be chalked up to beginner’s luck isn’t obvious, but close watching of this trader is clearly warranted.
According to the report imports dropped 15.3% in January as compared to the previous year, while exports dropped 0.5%. Analysts point out that the Chinese trade data could be deceiving, distorted by seasonal data and last month’s Lunar New York holiday and that overall demand remains positive. GDP is expected to accelerate given that Beijing has begun implementing stimulatory measures.
OpenBook trader powerfrank from Germany closed a short position in the pair to a 43.7% return; this trader with 104 followers and 9 copiers has recorded a 160% profit over the past six months. This trader allocates 70% to currencies and 30% to commodities, with the AUD/USD allocation representing 2.5% of the portfolio, and the return on it has been 9.3%.
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