Despite the interest rate announcement tomorrow and some talk this morning concerning a 50bp cut (not that i believe we will see 50bp) the AUD/USD looks like it is about to re-take the 0.7200 level and make its move towards the 0.7500 level that i have been harping on about for some time now. Expect to see some resistance ahead of the 0.7300 level which represents the high from back in early Jan and the last time we were above that level was early October 2008. As the daily shows, there is a fair bit of blue sky between 0.7300 and the 0.7700 level with the 200 DMA coming in at 0.7420.
If you are not already long AUD with your stop below 0.7080 then you should be looking to get long, although i am not convinced we will see much of a dip so i would be leaving a bid at 0.7165 and again at 0.7110 with stops below 0.7080.
