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The AUD/USD pair fell during the Monday session as the "risk off" attitude of traders affected commodity prices. However, the 1.04 level offered support again in this pair, and it does suggest that perhaps there is quite a bit of buying pressure in it.
We do see quite a bit of noise however, and as such we are a little hesitant to go long of the Australian dollar right now. After all, the Reserve Bank of Australia is considering rate cuts in the near future. Some are even expecting two different rate got. Because of this, we think the Australian dollar will underperform the New Zealand dollar. So in a sense, we think that the commodity rally will benefit the Kiwi more than the Aussie. With this in mind, we don't want to short the Australian dollar, but we aren't overly excited about going long at this point either.