What’s the plot with the AUD/USD…?

…keep being asked about this pair.

I’m remaining stubbornly bullish for the moment, but feel the pair is trapped between some large demand around 1.0450 and the importer offers ahead of the 1.0500 barrier. There are also expiries today for  the NY cut  at 1.0450 and 1.0465.

It’s not a clear direction at this point, but with mixed forecasts on Chinese mineral demand, S&P’s affirmation of China’s sovereign rating, and rate cut talk from the RBA at Tuesday’s meeting the market appears to be a bit balanced,

EUR/AUD may however hold some clues, with a break back up through 1.2430  exerting some down side pressure on AUD/USD, but we have so far failed to close above the 200 day MA (1.2412) in  the cross since Nov 2,  and until we do close above, I ‘m sticking to my guns.

AUD’s presently around 1.0465

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