AUD: Still stuck in range-trading mode
The market is not expecting a rate cut from the RBA next month, largely ignoring poor domestic economic data and concentrating on strong Chinese performance and rising commodity prices. This expectation will only change if today’s CPI numbers come in a long way below expectations.
AUD/USD is capped by heavy sell orders near 1.0600 but there are still plenty of stop directly above 1.0605, and both real money and Sovereign bids are expected below 1.0500. AUD/JPY is consolidating below 95.00 and should find support at 92.50. EUR/AUD failed again to utilise its recent bullish momentum for a move above 1.2800 and has settled back near familiar levels. AUD/NZD is also stuck near 1.2550 and its hard to see that cross moving too far.
In other words, mild bullish bias remains overall for the AUD in line with positive global sentiment but progress is very slow indeed.