All looking pretty rosy this morning for the AUD/USD bulls as the Shanghai composite holds gains, but expect the going to be slow ahead. I understand some buy stops went through earlier up through 1.0470, but there is likely to be a raft of offers thereon up to 1.0500, with more lined up towards 1.0520/1.0544 ( Sept 21,17 highs).
There could well also be some optionality interest around 1.0500, but known expiries today are at 1.0400, 1.0420 and 1.0470.
Plenty of talk about that the RBA will cut 25 bps off the cash rate next week , but I wouldn’t take this for granted although the market is pricing in 50 bps of cuts over the next 6 months and up to 100 bps over the next year.
AUD/USD is trading around 1.0460, bids lie around the Asian lows of 1.0430/35 (tech 55 Day MA at 1.0422 below)and more bids sit at 1.0400/10, but sell stops await a break of the latter level.
