There is very strong technical support now at .9940 and backed up with a strong trend, the AUD/USD looks like it will consolidate above 1.0000 and perhaps move higher to test the December highs around 1.0250. The AUD may struggle to make major gains on the crosses, but with a good carry to encourage longs and discourage shorts, any major sell-offs in the AUD are also unlikely.
Dealers bought this morning ahead of expected corporate flows and with the USD under considerable pressure, the danger side for the AUD/USD is still the topside.
