AUD: Should be busy today with plenty of conflicting forces at play
- Risk aversion is quite heavy across all financial markets with big hedge funds dumping positions across multiple asset classes (see yesterday’s post). This is generally AUD bearish.
- The big EUR/AUD buy order looks to be complete, this should ease the downside pressure on the Aussie.
- Today’s unemployment data will add to volatility, 5.6% unemployment rate expected after 5.5% last time.
- AUD/NZD is trying to return to its downtrend, another bearish sign overall for the AUD.
- There is major support at 90.00 in AUD/JPY, which is the 50% retracement of 74.50/105.50 up-move.
As you can see, there are plenty of conflicting forces at play which should guarantee us volatility and a range-trading bias. I’m looking to play .9325/.9560 in the AUD/USD.