After bouncing from strong support in the 0.8240/50 area overnight, AUD/USD is pushing against resistance in the 0.8340 level, the area where Aussie found support several times earlier this week. We’d expect some late-comers to the short-side of the market will close out positions if prices move much beyond 0.8340/50. The mid-point of the recent 0.8470/0.8240 decline comes in at 0.8355, coincidentally.
Lat nights firm Aussie GDP data has the market locked-in for a hike in Australian overnight rates at the November RBA meeting.
