AUD/USD: Likely to range trade ahead of RBA tomorrow
- AUD/USD still looks technically extremely oversold but no sign of a bottom forming.
- AUD/NZD has rallied strongly from 1.12 base, but on back of NZD weakness rather than AUD strength.
- AUD/JPY is mid-range at 88.00 but looks like a sell-rally proposition whilst still below 89.50.
- Overall AUD positioning is at extreme levels which means that we will get a severe short-covering rally as soon as any good news breaks.
Looks like it should trade .8850/.9000 over coming sessions and I’m happy to throw in a speculative bid near .8775 technical support.