AUD Trading Outlook
INTRADAY CONCLUSION: With EMs starting to calm down, hopefully, we should have a relatively quiet range-bound day. I’d play the .8970/.9030 range edges whilst trying to get a feel for the market. Positioning remains at extreme short levels so we may get some pre-weekend profit taking?
INTRADAY CONCLUSION: We are nearing important support levels for the AUD against the JPY, NZD and EUR. It’s natural for the market to test these so I am expecting some downside probes early in the day, especially if the RBA minutes are reported as ‘dovish’ on the newswires. But I’m still a dip-buyer and see levels near .9050 as a good entry point.
INTRADAY CONCLUSION: I expect to see further volatile consolidation in the AUD/USD between .90/.93 over the coming week as the market fluctuates between risk aversion and USD selling. I think we will see buying emerge .9130/40 and we may get a test of those reported stops above .9240. But today may stay very quiet so be also prepared for a tight 30/40 pip trading session.
INTRADAY CONCLUSION: The great unwind of AUD-shorts has begun but we still need to pick our entry levels carefully. The Aussie is soon to run into resistance against the JPY at 89.00, against the NZD above 1.1500 and against the EUR near 1.4350, so I think it’s best to sit back and wait for dip-buying opportunities especially against the USD. Book profits on longs near .9210 and re-buy any deep dips towards .9050.
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