Australian dollar shows some life

The Australian dollar is showing some life as it trims today’s decline to 38 pips and more than 100 pips from the lows.

That’s a sign that some strong hands are wading into the morass. At this point, it’s all psychological. The market is going to have to wade through some massive option unwinds, fear and margin calls but — when you back out — it doesn’t look like a crashing economy and there is a Fed put that will get exercized eventually.

I don’t like being a hero at a time like this but it’s nice to see some two-way action.

This article was written by Adam Button at www.forexlive.com.