In overnight trade, the AUD/USD did it’s very best to stage what was a very unlikely rally. And for the most part, no one could work out exactly why that was the case.

The Aussie has been in a downtrend for the best part of a few months now and it has really tanked from the highs of 81 cents. Yesterday we saw a jump during European and US trading, and there really was no fundamental drivers. The only major news that came to light was of a huge M&A deal that featured a European conglomerate buying out Australia’s major shopping centre chain. Otherwise, we have to assume the spike was technically driven.

The AUD rallied to 0.7578 which was one of our resistance levels that we had been focused on. It promptly sold off, but it has given us a good guide as to where the selling pressure seems to be.

I’m not looking for huge movements in the Asian session, but I’m happy to sell spikes to the upside into that resistance level. With the FOMC tomorrow morning (Asian time), I won’t be taking any long-term positions on just yet.