AUD outlook: Mixed bag on crosses but AUD/USD set to recover
- AUD/NZD continues to drift slowly lower and is targeting 1.1500, but that level should be tough to breach. Resistance is solid near 1.1750/75.
- AUD/JPY is consolidating in a daily channel between 90.00/93.50 (see chart).
- AUD/USD looks really oversold on the dailies but could consolidate .9050/.9350 whilst the market musters some momentum.
- [NZD/JPY looks like a stand-out buy-on-big-dips play].
I think the combination of improving risk-sentiment, wavering USD-sentiment and an already very short market will ensure that AUD/USD rallies towards .9600 in coming weeks.