AUD/USD: We initially saw some profit taking in Asia but bounces have been limited. US dollar long positioning doesn’t seem stretched after being trimmed for the past two weeks and the currency should remain bid into the year-end. Sell AUDUSD rallies to 0.8160 with stops above 0.8250. We expect a test and most probably a break of 0.8070, the 2010 low, before the year-end.
USD/JPY: We have seen buying interest in the pair for the first time this week. USDJPY bulls could be more confident into the year-end at least as long as risk sentiment is stable. An eventual break of 119.10/20 will create room to 121.72, the recent high and quarterly Ichimoku top.
NZD/USD: Sell on rallies to 0.7750 with stops above 0.7810, for 0.7600.