Some might say fundamentally Australian dollar deserves something around 0.6500 level against US dollar and that's where value buyers will jump in. But well, if everybody is saying 0.6500 then we would say, add roughly 300/500 pips and make it a base level ;)
So we get something in the vicinity of 0.7000. Current price is sitting somewhere in the middle because short has more value if it is near 0.7500 and long is not attractive until around 0.7000 at least. Besides it is tough to short Australian Dollar at extreme because of its 'carry power' - something like stock with good dividend.
Let's see where it gets push around during today's NFP and if it is near the levels mentioned above, we will go long or short. But until that we will be trading it with long bias between the range 0.7325 - 0.7380.
So we get something in the vicinity of 0.7000. Current price is sitting somewhere in the middle because short has more value if it is near 0.7500 and long is not attractive until around 0.7000 at least. Besides it is tough to short Australian Dollar at extreme because of its 'carry power' - something like stock with good dividend.
Let's see where it gets push around during today's NFP and if it is near the levels mentioned above, we will go long or short. But until that we will be trading it with long bias between the range 0.7325 - 0.7380.