AUD/USD: Looking oversold again and most recent selling is speculator driven
Compared to the rest of the globe, the fundamental picture in Australia is relatively sound. We’ve seen the currency undergo a sharp re-alignment in recent months driven by asset repatriation, but the more recent moves are speculator driven (the same guys who were long at 1.05!).
I’m not being dragged into the eternal AUD bear story, which I think is a load of cobblers, and once the charts stabilise we dip-buyers will get another chance. Have a look at the weeklies (see chart) which suggest that we could see levels towards .88/.89 and I think I’m best saving my ammunition for that dip.