The expectation among some interbank players is that there will again be some significant demand for AUD in early London and they are happy to trade from the long side heading into Europe. There are also a significant number of stops just above 1.0000 which will prove attractive but on the other hand there are also reports of good sized sell orders in the 1.0020/30 region. I’ve been told that these sell orders belong to macro funds who’ve been long for an extended period but are now looking to start booking some profit.
If the market starts breaking lower again we can expect to see stops below this mornings low of .9918 and probably more stops back below .9870 again.
