AUD/USD closes the day slightly lower as the market expectations of a rate cut at next week’s last RBA meeting for the year grow on the back of the actions seen from the Big 6 Central Banks to help the state of the global economy. Also, helping the change in rates is that there is no January meeting and the markets don’t believe that Gov. Stevens could wait despite his normal reluctance to change anything. The AUD price dipped to 1.0206 during the afternoon after earlier in the day trying to get above 1.0250 offers.
The sideways pattern that is being seen across the market will likely continue into the US morning, as the fear of a better than expected US Non-Farm number builds around the markets. The level that we will be watching is a break above 1.0260 to see a possible squeeze back to the weekly high of 1.0330. Anything above this has to be unlikely whilst a move back to 1.0150 is our favoured option. A break below after payrolls could get nasty!

Compass Direction

Short-Term   Medium-Term

NEUTRAL         BEARISH

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