As we saw in yesterday’s hedge fund positioning report, the professional market is short AUD and it sure smells that way as well. The reaction to the jobs report was a dead giveaway and I suspect that more gains are around the corner. That said, offers should be particularly solid near 1.0310/20 and that should slow bullish momentum in the first instance. Remember, there has been a lot of bond buying over the last few days and that creates demand for the AUD.
