Chinese stocks are coming off two very bad days and this had had quite an adverse effect on the AUD. Dealers will be keeping a close eye on the Shanghai index for some sort of a lead.

There is fairly solid technical support at 1.0395 (which is a prior hourly high and the 50% retracement 1.0165/1.0620) and there are sell orders reportedly building above 1.0500, so playing this 1.04/1.05 range looks like a reasonable strategy.