Most of the interbank dealers and salespeople that I have spoken with say that the market is quite long AUD/USD and they are wary of stops being triggered on a sell-off. If that is the case, then it is holding up very well indeed and dips look to be really well supported. There is talk of Sovereign bids towards .7050 and newspaper articles such as this one suggesting that the RBA is now finished cutting rates are helping to keep the AUD fairly buoyant. As I have been saying for some time, the AUD is overly low against the EUR and CHF in particular and perhaps now we are seeing some of this weakness being eased.
Initial resistance is at .7170 and support is at .7050.
