I know its only a microcosm of the market, but based on what I read in our own comments section, I have the feeling that the market is short AUD. I myself have been trying unsuccessfully to sell the AUD, primarily against the EUR, as I felt that global uncertainty and a hung parliament would weaken the AUD. I’ve been wrong.
The case for being long USD, aside from it being cheap, is very weak indeed. With favourable interest rates in Australia and with a strong economy in a growth region, it is certainly a dangerous trade to be trying to pick a top in AUD/USD. If the pair breaks above .9410 anytime soon, then we may see a serious cull of Aussie bears.
