AUD/USD: Large end-of-financial-year flows anticipated today
The AUD should be in for a busy day with large end-of-month and end-of-financial-year flows anticipated during the Asian session and particularly at today’s London Fix. I’m a bit surprised to read that these flows are expected to be heavily AUD positive, after the big falls in local markets, but that’s what the banks are reporting. [Edit: FXWW303 tells me that he expects the month-end flows to be AUD negative so no definite consensus, apart from fact that there will be some big flows].
The short-term down-trend is still in control (see chart) but the consolidation channel between .9250/.9375 seems to be the dominant factor there.
FXWW888 is reporting downside stops below .9230 which suggests that some of the shorter-term hedge funds are trying to pick a base.
I’m still long with a stop below .9120.