Local dealers are saying that the AUD/USD is approaching a pivotal level, likely to be around .9725/50. Real money funds have been seen selling overnight and this selling will intensify towards .9725.
The biggest downside risk for the AUD will come from tomorrows US vote on the China FX bill. If any tariffs look like being introduced, this will be negative for the AUD.
The two biggest drivers to the topside are the increasingly bearish USD-sentiment as well as market flows from the options market. Dealers say that a break above .9750/.9800 will bring some huge option plays at 1.00 into view and they may well act like a magnet for prices.
