Overnight, We have seen USD yields touching 3.1% 7 year highs. We are seeing the market starting to price in 4 hikes in 2018. The USD has pulled back somewhat overnight. The yield differential, the DXY holding 93.00 and an upward revision to Retail Sales make for a strong USD picture.
Overnight we have seen some risk off as North Korea have threatened the cancel a summit with US/South Korea amid South Korea/US military drills in the region. There were also GDP misses for Japan. This will offset any JPY strength and generally make the picture cloudy for a Safe Haven play.
We have also seen a miss on Australian wage data. This has been cited as a reason for slow inflation growth. The RBA is seen to likely hold any policy moves given this kind of data.
Therefore i am looking to sell AUD/USD on a pullback today.
The 0.75000 handle is near a 50% fib of the recent swing (0.7565 - 0.7447) and has some resistance in the general area. This represents the best price to get short from. The 88.6AUD/% extension will be my first port of call when looking for a target.