There was a sell off due to Debelle last week jawboning the AUD, it had the effect they wanted a sell off/ profit taking took place.
This pair has been ranging for a while but the AUD up until late has enjoyed a gradual climb against its crosses.
I still feel that if tomorrow ( Asia session) the Aussie figs print well ( CPI ) as its expected to come in ticking slightly lower @ 0.4 , then we still have upside potential in this pair, but it will be short lived due to the AUD rally running out of steam now .
Now also not to forget the NZ trade balance is due out tonight along with RBNZ McDermott speaking, so this pair will get busy again .
Entry @ Confluence zones
1.0610-1.0630 after NZ events tonight
TP @ 1.08
Stop @ 1.0550
Happy trading people
This would have moved quicker had McDermott not made these comments last night:
Neutral interest rate has been falling, estimated at 3.5%
Estimate of core inflation is at 1.4%, inflation pressures are relatively moderate
Lower NZD would help rebalancing
Happy trading people .....