AUD: Real-money and reserve managers continue to sell
- It will be difficult for the AUD to rally whilst bigger players are selling into increasingly thinner markets;
- Reserve managers seem to be re-balancing before end-of-year whilst real-money funds are also active;
- AUD/JPY is still capped by its 200-dma and looks set to test important technical support (neckline, 61.8%) around 90.00. If the AUD can’t rally against the Yen then it really is the weakest of the majors for now;
- AUD/USD is in sideways consolidation but the bears are definitely holding the stronger cards (medium-term technical target at .8650);
- NZ monetary policy and Australian job numbers on the economic calendar.