Opened in Asia at $1.0310 on a relatively firm footing after recovering from midday lows yesterday of $1.0263. early exporter demand led a small move up to $1.0318 ahead of the China CPI release, but the pair then came under pressure despite the data coming in on expectations, as talk of an imminent RRR cut weighed. US investment house sales in EUR/USD, and profit takers in AUD/USD then led a dip to $1.0286 before the pair recovered to $1.0312 ahead of settling around $1.0300. Offers continue to check the aussie’s advance through $1.0320/30, with more set towards $1.0350. Bids are seen in the $1.0260/70 area. EUR/AUD picked up after fresh all time lows yesterday in NY of A$1.2314, opening this morning at A$1.2323 and pushing up to A$1.2358. AUD/JPY eased from early highs of Y79.32 to Y79.10 and remains heavy despite reportedly decent retailer bids at Y79.00. AUD/NZD was sidelined through a tight NZ$1.2923-48 range. Traders now await today’s ECB/BOE decisions and the Spain/Italy auctions.
EasyForexNews Research Team