AUD outlook: Downtrend solid but decent buying interest emerging
- AUD/USD saw heavy turnover reported yesterday around .8900 with ‘good names’ reportedly buying in size;
- AUD/JPY technical support at 86.25/40 remains unbroken;
- EUR/AUD breached 1.50 but failed to consolidate;
- AUD/NZD still stalling near Fibo support at 1.1460.
Much will depend on events in the EMs but the AUD market is undoubtedly building large short positions again and I’d expect these to start unwinding again as the election date nears. AUD/USD bears will be looking to test trend lows at .8840 whilst the bulls will be keen to get prices back above .9070. Perhaps a few sessions of range trading is the most likely outcome.