AUDUSD is still very much in consolidation mode given both positive n negative expectation.The negatives include recent dovish statement from RBA and though concern/downside risk from EZ/Greece has been reduced, it has not subsided entirely. Biggest risk for a RBA cut stems from worsening of the EZ crisis (here we r talking about Italy or Spain) n a hard landing in China. In addition, the recent tax on mining company is also not helping sentiment.That said, while a RBA cut would drive AUD lower, I reckon there will be buying interest for yield play. With most CBanks printing so much money n keeping interest rates low, AUD interest would still appeal to investors. Moreover, RBA is one of the few CBs that don’t do QE or Print money.

Tech picture suggest a retracement towards 1.0430 to 1.0350 area for entering partial bullish structure like Accu or Tarn

Main concern is how deep is the retracement given a potential reversal pattern on the daily chart. Hence, sustainability above 1.0430 would be key. Otherwise, 1.0280 will play a key role short-term.

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