AUD/USD: Outlook for the week ahead
I’m still short and overall bearish on this pair but with reserve managers still reportedly buying dips, and with the technical outlook still favouring sideways trading, I think we may be in for further range trade between 1.0150 and 1.0600. I’ve lightened my position at 1.0386 and 1.0370, and will wait for silly moves in either direction before adjusting again. AUD/JPY will also be worth watching, with important support on the daily chart between 81.60/82.00, and a break below there will have the bears back in charge.
The economic calendar is light this week so we will look to risk sentiment, equity and commodity markets, and institutional flows for short-term leads.