AUD/USD rose slightly during a fairly quiet Monday session. The pair is approaching the 1.0250 area, and has struggled in this vicinity previously. Because of this, we aren’t willing to buy at this level. The pair is going to be very sensitive to the headlines coming out over the next few days, and the Aussie is particularly sensitive to the data that comes out from China. As the Chinese are slowing down recently, we prefer selling Aussie overall. The pair looks like it wants to go higher at this point in time, but with the resistance just above, we aren’t willing to buy either. We prefer to sell closer to 1.05 as we see it as the top of the recent action, and believe overall that the pair will probably be weaker in 2012.
Written by FX Empire