AUD/USD session outlook: Play edges of 1.0460/1.0540
The main factor to watch for here in coming weeks is the influx of US cash into the Australian share-market, with hedge funds already declaring quite aggressive strategies in this regard for 2013. This should give the AUD a bid tone, for this month at least, but with the AUD market sitting quite long already at just below ‘extreme’ levels, we need to pick our entry levels carefully.
Sell orders were reported yesterday at 1.0535/45 so I’d use this level as my topside pivot and I’m guessing that support should start to emerge at 1.0455/65.
Of course much will depend on what happens in AUD/JPY and if it goes on another big tear in either direction then it will drag AUD/USD along with it.