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AUD/USD rose during the session to test the 1.05 handle, but failed in the end. By the end of the day, we saw a shooting star form, and it does look rather suspicious at this particular point in time. We are currently awaiting the Federal Reserve announcement, and as such we could see serious movement in this pair. If the market gets disappointed by whatever the Federal Reserve chooses to do, we could see this pair selloff. After all, the market is expecting the Federal Reserve to ride to its rescue.
With all this being said, we think as long as we are below the 1.05 level at the end of the trading session today that would be a very weak sign indeed. In fact, it would probably be enough to get us to start selling. A daily close above 1.05 however is very strong and as is buying the Australian dollar.