AUD: Sentiment still bearish but expect some choppy consolidation

  • AUD/NZD support at 1.1000 continues to hold. One trader whose opinion I value highly thinks that we will see one last exhaustive sell-off to somewhere on 1.08 handle, or maybe even slightly lower, before common sense and normality returns for a relief rally towards 1.1500;
  • GBP/AUD is seriously overbought on most shorter time-frames and will probably struggle to make any more impulsive gains;
  • AUD/JPY was another nice pick earlier in the week but at some stage it will be a really sensible ‘buy’, probably towards strong technical support at 90.00.

I’d expect the AUD to stabilise on the crosses in the next week and for the AUD/USD to consolidate sideways.

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