AUD/USD was sold first up in Sydney today following more analysts saying the RBA wont move on rates next week but wait till the November meeting (after Q3 CPI). I have no problem with that summation but market continues to favour a rate hike next week (62% chance) given the Governor’s hawkish commentary in the past month.
AUD/USD quickly recovered, firstly on the back of much better than expected South Korean export numbers before poking its head above 97 cents on the much stronger than expected Chinese official PMI reading. The pair then spent the rest of the day in drift mode.
Whilst we are at lofty levels there are plenty of stops now placed above 0.9730. So be warned.
