The big picture for the AUD still looks compelling; a strong economy, plenty of demand for the currency from a number of directions, and non-participation in the race to the bottom. Certainly the market is quite long and we may see a gradual drift lower, and I’m sticking to my guns that we see 95 cents before 1.10, but there will be huge demand on any big dips.
Stay in short term range trading mode and pick your entry levels carefully as there will be spikes of 200 pips in both directions. Short-term bias remains to sell rallies and medium-term bias is to buy big dips.
