I’ve read two reports suggesting that the big AUD buying flows are now drying up but it’s certainly not trading like they are. Pullbacks have been quite shallow, but as I said yesterday, this is probably more about AUD/JPY buying by hedge funds afraid of missing a boat.
Local dealers are happy to play from the short-side in the morning in expectation of some profit-taking and then wait and see what the Tokyo market does with the JPY crosses.
Corporate bids are firm near 1.0200 and there’s supposedly another barrier at 1.0375. Playing the edges of this range with a distinct bullish bias would seem like a sensible strategy.
