The AUD/USD pair fell during the session on Friday in order to retest the hammer from the Wednesday trading session. The 1.03 level below seem to be supportive, and as such we think that there is a real chance that we see a bounce from this point. The Australian central bank of course is set to cut rates, but this is nothing compared what the Federal Reserve is willing to do. Essentially, the Americans are willing to kill their currency, and as a result the Australians currency should continue higher. We think there is a real move coming to the 1.05 level, and perhaps even as high as 1.06 or so. As for selling, we won’t do it until we close below the 1.03 handle.
Written by FX Empire