There has been an interesting phenomenon in recent weeks where the AUD is being driven more by real flows rather than any total adherence to risk sentiment. Any large dips have met with strong buying interest and rallies have run into grateful profit takers. Anyone trying to jump on the AUD as a ‘risk trade’ sold at the bottom and bought at the top; the death-knell for all traders.
I’m hearing now of plentiful selling interest starting at 1.0410 through 1.0425 in decent size. AUD/USD for the moment looks like it will stay in range trading mode for the rest of the year.
