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!!)