The dominant trend of the moment, the falling USD, remains in place but we are seeing a lot of big cross flows which are confusing the issue. Yesterday morning we were discussing some large GBP/CHF sales whereas this morning its large AUD/CHF buys.
The AUD/USD is gravitating towards barrier options at .9950 and of course at 1.0000 but the going is slow and EUR/USD is still struggling to make a clean break above 1.4000. The market may be bearish USD but it’s having difficulty selling it at these levels.
NZ retail sales and Australian inflation expectations are due out this morning.
Good luck today.