Traders are reluctant to take on fresh longs here this morning ahead of the RBA decision. Even with a 25 bps hike, it may be a case of selling AUDUSD and taking profit if the accompanying statement doesnt clearly point to another rate hike in December. With Melbourne Cup fever around the nation, liquidity could also become an issue if positions need to be cleared. My feeling after talking to a few traders is that the AUD market is long.
There is resistance at the tankan line at 9120, but no real sellers until 9225 as Sean mentioned.
Wait for the RBA decision and statement before initiating a new position.
