AUD/USD tried to take out the stops above the Asia session high during the European
morning but the markets sidelined direction didn’t give enough ammo for any real move and it wasn’t until the early US morning that the positive momentum kicked in with the stops taken out above 1.0420. Positive risk sentiment helped commodities and equities rally and with those two areas well bid momentum buyers and caught shorts drove the price higher and it tested 1.0500 offers late in the session with intraday profit taking and longer term names being seen on the offer. CB Leading Index m/m and RBA Gov. Deputy Battellino speaking in Sydney are the only main focus points of the day with the Deputy more than likely to continue talking up the state of the economy.
WE will be looking for profit taking and new shorts to control early and then a little short term stop hunting if the pair is still towards the 1.0500 highs. Yesterdays rally is clearly catching out a markets that remains short.
Compass Direction Short-Term Medium-Term NEUTRAL NEUTRAL
Please see the attached chart below.