The AUDUSD was unable to track higher yesterday after the RBA shifted to a “neutral” stance. Seems it was a case of buy the rumor and sell the fact, with the RBA wording already factored into the market. Even the treasury’s statement about fast tracking inward investment from offshore didnt get the bull fired up.
Asian Central banks are seen supporting the AUDUSD around the 8370-80 area(the recent break out level) and more macro funds looking to buy on dips back to 8250. On top we must take note that the RBA will be looking to smooth any rapid rise by selling into rallies to slow the appreciation. On top sellers noted between 8470 and 8520. Only above 8520 will momentum traders look to join in.
In the option market, there are 8375 and 8425 strikes rolling off tomorrow.
On the day look for 8470 to be a cap and 8370 support. Play range, dont play break-outs.
