AUD/USD intraday outlook: Range-trading likely between 1.0370/1.0470
Yesterday mornings highs just above 1.0470 are the first obvious resistance level and risk-sentiment will determine whether we test these or not today. There was some heavy AUD/JPY selling out of Tokyo yesterday and if this is repeated then we will fall back to test yesterdays lows at 1.0370. In other words, more range trading expected. In the bigger picture, I still like the wedge formation on the weekly chart and more especially so after the RBA yesterday confirmed that they’ve been selling AUD on the quiet.
Real money funds have been persistent buyers over the last 4 sessions and AUD/USD will have trouble falling whilst this continues.
Summary: Play 1.0330/1.0580 range in medium term but with a definite sell-rally bias at these levels as long as weekly wedge is relevant. Shorter-term ranges will depend on prevailing risk sentiment, with 1.0370/1.0470 likely to contain prices.