The market is expecting a small rise of 0.2% over the last month.
The AUD is a bit of a mixed bag at the moment which favours the range traders out there. We still have Monday morning’s gap back to .9750 to close but with pairs like EUR/AUD turning lower, there is plenty of interest to buy the AUD on dips. Improved sentiment on world equity markets is helping the risk trades but the Spanish situation in particular is still favouring risk averse trading.
Ergo, range trading! .9750/.9925 are the short term parameters and .9660/1.0120 should contain broader moves.
