There were a lot of stops triggered in the AUD/USD last night and although the bounce was significant, the tide could be turning against the darling of the FX markets. The interest rate and economic story in favour of the AUD are well chronicled but this story hasn’t changed all that much since the AUD/USD was at 80 cents, 15% lower. I think the FX market too often ignores price at its peril. The big guys are booking their profits and heading off for an early Christmas break and I feel we may see more of this profit taking from a very long AUD market in coming weeks. Desperado or not, I’ve got a big AUD/JPY trade idea formulating which I’ll share in the next hour or so when I get my charts warmed up.
Good luck today and TGIF!