I’m told that a macro hedge fund has bought around 200 million AUD/USD this morning. The market has soaked up these purchases easily and in fact has drifted slightly lower with the AUD losing a bit of ground on the crosses.
There is fairly steep trendline support around .9160 and a break below there, or at the latest below Friday’s .9130 lows, should trigger a light bout of stop-loss selling or trailing stops on existing longs. The next topside technical target is the previous pivot around .9260 (remember when we opened at that level for about 20 successive days).
There has been no overt RBA activity in the market but dealers suggest that they are quietly selling to slow down the AUD/USD rise.