The demand on any dips for the AUD/USD remains very strong. The speculative market is still long but this prolonged bout of sideways activity is probably easing these overbought conditions. Just because the RBA is likely to pause in its tightening cycle at the next meeting is probably not a good enough reason to be selling this pair. The RBA governor, Glenn Stevens, said on Friday that he will be watching this week’s CPI number closely, best we do the same.
We can expect further trade inside the .9150/.9350 consolidation range for the early part of the week.
