The AUD is being driven higher by AUD/JPY buying, which intensified overnight after the break above weekly resistance at 104.50. Very strong NZD demand is also influencing the AUD.
Today’s first risk event will be the jobs data, with the unemployment rate expected to be steady at 5.4%. The AUD will also be heavily influenced by whatever happens at 100.00 in USD/JPY.
AUD/USD has consolidated above 1.0500 and its next target is daily highs at 1.0625. I’m still in the sell-rally club in line with the strengthening USD but getting the timing right is proving very tricky. Best to wait on the sidelines for some ‘silly’ developments.