AUD makes ground on crosses; stop-loss driven rather than any fundamental change
AUD/USD reached highs just above .9340 overnight, which is exactly where the hedge fund trailing stops were reported to be. It retraced immediately by almost 100 pips which suggests that the rise was totally stop-loss driven in the first place. The AUD also made decent gains against the EUR and the GBP and the worst seems to be over for the Aussie, for now at least.
The AUD/USD has a series of higher lows on the hourly (see chart) so I still think it makes sense to play from the long side intraday. I reduced my long position on 2 occasions overnight and am now sitting with a much more comfortable position with a healthy size and average. Big improvement from earlier in the week! Now its a matter of letting it run and hoping for the best.
Good luck today.