Today’s sell-off has left the ozz a bit vulnerable with a number of traders looking closely at AUD/JPY.
That pairing has collapsed today from around 86.00 o/n to a low of 84.42, with recent data showing Japanese retail positioning a net long of around 34 yards of ozz. If this position starts to unwind things could get rather messy , particularly with a close below 84.50.
AUD/USD currently gets some support from EUR/AUD leveraged sellers, but suggestions now of stops building on a break of 1.0580. Earlier low was 1.0588 with spot now at 1.0617.