AUD outlook: Risk-aversion, looming election and a double-bottom
- Potential for a double-bottom in AUD/JPY just above major Fibo support at 86.25 (see chart). Obviously still much work to be done as it needs to break and hold above 90.10 but I really like the risk-reward here;
- Market still in risk-aversion mode and eyeing Syria and emerging markets;
- AUD/USD needs to break below .8845 trend lows to reinvigorate the bears or back above .9070 to threaten the down-trend;
- I expect AUD short-covering to pick up pace as the election date nears.