AUD Trading Outlook
INTRADAY CONCLUSION: I still much prefer the short AUD trade and it’s a matter of picking your counter currency. If USD/JPY breaks below 97.00 then we can expect more liquidation of longs in pairs like AUD/JPY as well. A poor China PMI number will only add to the bearish momentum.
INTRADAY CONCLUSION: We will see more range trading across the major pairs and any movement will be determined by one-off flows and stop-loss hunts. I prefer to be short AUD/USD ahead of 1.0360 but with very tight stops above. Any dips back toward 1.0300/10 will attract short-coverers for sure, so it’s hard to get away from the overwhelming range-trading bias.
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