AUD/USD has blasted higher today, boosted by renewed risk appetites. It’s hard to get wildly bullish on this pair given the fairly rapid deceleration of Aussie economic stats of late. Looks like the RBA can comfortably stay on hold for the next few quarters…
Technically, AUD is rettesting the neckline from the head and shoulders pattern taht has been unfolding in the last week or so. If it holds below the 0.9780 area, downward pressure should return.
A small short with a tight stop above 0.9800 looks like a solid risk-reward proposition for a return to the 0.95 handle and potentially below in the weeks ahead.
