AUD/USD: Best left alone, wait for silly spikes either way

Pretty much as expected from the RBA and the AUD/USD is also doing as expected, edging lower towards .9200.

Time for coffee! Catch you at the European open.

  1. Hey Sean , it doesn’t look to me like the meeting brought anything new or unexpected. The next test imho will be the NFP numbers. Aussie still looks like a good buy on the crosses , against JPY and NZD. Is hard to see the price collapse from these levels to head lower since we don’t have a significant fundamental driver. Numbers out of China recently are a good example : were bad but not that bad , and certainly not unexpected. I think the market is already stretched and these are important levels where one should expect support. A failure here will see the rate heading to test 2010 lows and such a move will require a significant deterioration in the outlook for the aussie.

  2. Thanks Adrian, careful against NZD I think, large stops lurking below mkt thru 11700 I hear. Otherwise agree, AUD/JPY looks like ‘safe’ buy-on-dips with stop below 8950

  3. @ EW , careful with that one. H&S is a major top reversal pattern , which should only be searched after extended rallies , not near the bottom and for added weight trust better higher time frames.

  4. Watching EURAUD closely …. shs top which is forming rhs now on 4h+ timeframes – neckline at 1.4000 beneath daily channel support at 1.4060 level. Target beneath 1.3550 (may as well call it 1 June top round 1.3580)

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