AUD/USD: Bullish trade idea targeting 1.1200

I’ve just read a trade idea from a professional trader which is certainly very different to the way I’ve been thinking. He thinks that the AUD/USD is in a consolidation phase which is soon to break out to the topside and his target is 1.12. He makes the following contentions:

• AUD will continue to benefit as other currencies like USD, JPY, GBP etc keep printing.
• Reserve managers and asset managers still need to buy AUD.
• Large inflow of cash from China seems to be gathering pace after recent law amendments.
• Hedge funds and CTAs are short.
• Interest rate cutting cycle has come to an end.

His technical indicators are proprietary so I won’t elaborate there but overall he expects the AUD/USD to trade near 1.12 in 2013.

I found this very interesting as I have been ueber-bearish on the AUD for quite a while but his arguments have certainly given me some food for thought.