• USD sentiment remains weak amid on-going US budget impasse;
  • AUD has started to recover strongly on the crosses;
  • This recovery has happened despite supposed ‘risk-off’ trading conditions;
  • Technically, AUD/USD dipped and bounced off a 38.2% retracement level, usually a sign of a strong trend;
  • I favour the buy-dips strategy in AUD/USD until something happens to change the outlook, with initial short-term support at .9380.