AUD/USD staying heavy but .9000 remains untested today

The market is all beared up again on the AUD and local banks are now calling for another 2 rate cuts this year. The AUD/USD has been the only mover of note in early trade and patient shorts are no doubt starting to book at least some profit ahead of the big psychological level. The low so far has been .9011 and we may see intraday shorts getting squeezed again as we head into early Europe, (but rallies are still looking like selling opportunities, at least in very short term).

USD/JPY hasn’t done anything so far today but we may get another test of 97.60/70 support in early Europe. The risk reward in buying that dip with a tight stop below 97.50 still looks compelling.

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