AUD/USD: Still prefer to buy dips for break above .9350
- As with USD/JPY, I expect positional adjustment to be main factor in the AUD/USD.
- AUD/JPY is still range-bound between 90.00/93.50 (see chart) and we should see AUD demand increase as we near the lower end.
- EUR/AUD has again failed to convincingly close above its technical pivot at 1.4400 and I think we may get some extended 1.39/1.45 consolidation.
- The short-term charts are looking moderately constructive and the market is trying to form support near .9230 (see chart).
- The AUD didn’t really react to the sharp fall in the copper price. There isn’t a super-strong correlation here but nonetheless, the lack of any reaction does suggest that the bears are getting tired.
There is nothing of note on the economic calendar today so we will depend on flows. I prefer to buy intraday dips towards short-term support at .9230 looking for a test of .9330/40 resistance later today. A break back below .9200 will muddy the picture and put short-term bears back in control.