Snapshot: AUD/USD trades heavy near 0.7100, pressured by a hawkish RBA stance and crowded long positioning. Despite holding rates at 4.10% at their last meeting, Bullock’s comments that inflation progress remains ‘uneven’ keeps traders cautious and unwilling to aggressively price in cuts. The lack of a firm commitment to a cut path is weighing on the Aussie.
- Watch for any intraday move above 0.7120, which could trigger a short squeeze given the crowded long positioning.
- Risk of further downside if the US dollar catches a bid amid risk aversion, exacerbating the pressure on AUD/USD.
Bias into NY: Bearish on AUD/USD as the RBA’s hawkish stance continues to support the pair, targeting a move towards 0.7075 if the 0.7100 level breaks convincingly; USD strength may amplify this move.