AUD/USD is settling back above 1.0500 but the signs are strengthening that a sell-off will emerge sooner rather than later. Overall market positioning is still reportedly quite long, the sell-off in precious metals is certain to affect sentiment, recent jobs data was disappointing putting a June rate cut back on the cards, and US Treasury comments will undermine Japanese attempts to weaken the Yen (putting some downward pressure on AUD/JPY).
I’m not ready to commit to the short trade yet as getting the timing right has been very tricky, but I remain convinced that we will see 95 cents again before we see fresh highs above 1.11.