For all the Brexit mess in the UK it's comforting to know that there's always someone else worse off ;-)
Eamonn wasn't short of a comment or two on his country's election process this morning when I took over. The revolving door that is in place in Aussie politics has been well oiled once again.
Despite the uncertainty of who has actually won, AUDUSD is flying and is pretty much up 100 pips from the Asia lows.
AUDUSD daily chart
The 0.7500-0.7530 level has been a sticking point almost every time we've been up here so a clear break and hold of 0.7530 will be needed to bring a proper push higher. Even if we do get that the upside has been very hard going this year. Two key levels to watch should we move much higher is the 100 wma at 0.7731, which is meeting resistance at 0.7723, and the 200 mma at 0.7871, which helped contain the April rally.
Today it looks like the added impetus has come from mild USD weakness rather than complete AUD strength so caution is advised if you feel like chasing this higher. The RBA is in focus this week but if the political scene hasn't been cleared up, they're unlikely to say anything shocking.
The better risk reward looks like shorts from up here and I've just pulled the trigger myself with a tight stop just over 0.7550.
