The AUD/USD pair fell during the Monday session as the “risk off” trade came back into play. There a lot of concerns out of Europe now, mainly revolving around Spanish principalities and cities. Spanish and Italian bond yields have spiked again, and as such there is a bit of a run from the Euro. With this in mind, we think that this pair will continue to be pushed around by the headlines, but the fact that the 1.0280 level or so has held does look like there will be an attempt to rally the Australian dollar. With this in mind, we are long of this pair and looking to hit the 1.04 level in the near term and much higher over time.
Written by FX Empire