AUD/USD: Range trading favoured
- The return of large EUR/AUD buying was very interesting and we have to wait and see whether this was a one-off event or not.
- AUD/JPY remains heavy but the lack to follow-through below 89.90 suggests that yesterday’s selling was a stop-loss hunt primarily (I knew I’d hit the low 🙁 ).
- Sovereign names, including big central banks, as well as real money funds were noted buyers of AUD/USD starting at .9500.
- The technical picture remains bearish but further sideways consolidation roughly between .9430/.9600 looks likely.
Unless we get some last minute positional adjustment pre-FOMC, we can expect a fairly quiet session I think. I’ve got no strong views at the moment.