Two interbank, let’s be generous and call them strategists, who have been bullish on the AUD over the last few months when AUD/USD was at 1.0750 and GBP/AUD was at 1.4700 have suddenly turned bearish on the AUD and now see it falling sharply. Guess it’s nearly time to start booking some of those short-AUD profits?
I think the AUD is still in a downtrend but we should stay in rally-selling mode, rather than selling breaks, whilst the other majors stay in range trading mode. I’m thinking 10225/10475 as a possible short-term AUD/USD range with a definite sell-rally bias. EUR/USD is still in range trading mode in my opinion and levels towards 1.3150 are dips for mine; cable has turned moderately bullish in my view and I see dips towards 1.5800 as buying opportunities so I’ve just started a small position at 1.5880; USD/JPY is still overall bullish but the market got ahead of itself yet again and is now relying/hoping for the BOJ to help out- 81/84 should cover this pair for the next couple of weeks.
