The pair has shown good support under the 90 handle and is looking to test strong resistance at 0.9079 (the 38.2% retracement of the 11.3% sell-off in October...

The pair has shown good support under the 90 handle and is looking to test strong resistance at 0.9079 (the 38.2% retracement of the 11.3% sell-off in October to January) and a daily close above this level could see the pair target the 92 handle. While I still see the pair headed lower this year, until we can see short term US treasury yields heading higher, we are not going to see good flows into the USD. Traders are now keen to see Thursdays Aussie private capex numbers as the key catalyst.