AUD/USD outlook: Likely to stay range-bound ahead of tomorrow’s jobs data

The market broke below important support at 1.0165 last Friday during thin afternoon trade in NY. The fact that it has been unable to sustain those losses is certainly a slightly bullish factor and the overnight reversal in fortunes for EUR/AUD is another pro-AUD indicator. Nevertheless, overall sentiment remains bearish for the AUD and with further rate cuts to come, selling big rallies remains the trade of choice for many players. I’m expecting the AUD/USD to remain range-bound between 1.0150/1.0280 until the jobs data and short-term moves will be determined by Chinese sentiment and EUR/AUD flows.

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