Bids are still solid near 1.0625 but the dealers I’ve just spoken with are both bearish overall. They do not expect a break lower today but asset managers, macro funds etc are all long and now that the EZ debt crisis is easing, there may not be such a need to be overly long AUD. EUR/AUD in particular looks like its put a temporary base in.
I’m taking small partial shorts back here at 1.0650 just in case the range continues to hold but I remain core short AUD against the USD and the GBP. I’m just trying not to get overly bearish on dips!
