If anything moves today, I have a feeling it might be the AUD/USD and I’m going to play from the short side.
- The .9725 level which I’ve been closely watching has held now on two separate occasions
- It’s Friday and it’s October which is traditional risk-aversion time
- There will almost certainly be further slanging matches between China and the US re the Yuan
- Data from the futures market suggests that the market is quite long
- Pairs like cable are showing signs of tiredness, therefore we might see some sort of USD rebound over the next few days
- The RBA won’t hike next week; or at least more people are starting to think they won’t
- Finally, large stops below .9600 might get triggered
(With so many bearish reasons it probably goes straight up!!)