The AUD/USD is starting to behave a bit like EUR/USD, which must be a worry for the bulls. There was a big sell-off yesterday in late Asia and into early Europe but this was unwound as heavy Middle East Sovereign buying emerged around 1.0450. As we saw some months ago in the EUR/USD, if these players are serious about buying then they will have a dramatic effect. On the flip side, China was selling rallies as were some of the bigger hedge funds. I believe the hedge funds were mainly selling AUD/CHF and buying GBP/AUD. I’d expect volatility to remain high in AUD/USD and we should put our patient range-trading caps on.