Morning all,
The AUD was unable to break higher overnight and once again the level on top to watch is the 9165-70 area. Range traders looking to buy 9090-9100, but critical support not until 9040. The building approvals number is keenly awaited, for further clues to interest rate hikes. Forecast for the November reading is +3% MoM and a number much greater than that, will see speculation about a February rate hike grow.
Personally, I feel market is sitting touch long, waiting for the number. Risk is to the downside, especially if a worse than expected number is seen. Still short, with a stop above 92c.
A move down through 83.00 in AUDJPY will also see longs liquidate and will confirm a temporary top seen at 85.30 in late October.
