AUD outlook, Friday August 23rd
- Prices stalled at the 76.4% retracement of the .8850/.9240 rally (see chart);
- AUD/NZD looks likely to rally further towards a first Fibo level near 1.1760 (see chart) but I’d prefer to see 1.1550 break first before committing.
- AUD/JPY also starting to look bullish but the medium term trend is still bearish so need more confirmation there;
- Settling down in EMs and emergence of profit-takers in US Treasuries should both be AUD/USD positive;
- Nothing on economic calendar apart from Jackson Hole Symposium, where all big CB chiefs are missing.
I’d suggest a range trading day between .8970/.9040. I’m sticking with my long position, still more in hope than confidence. Let’s see what happens.