Opened at $1.0594 in Asia after lows in NY of $1.0527 as market risk sentiment wilted on Greek debt delays and widening Portuguese debt yields. However equity markets then rallied from earlier falls and real money demand led a solid recovery back into the close. Asian markets saw an initial dip to $1.0577 before comments from Greece’s PM and other EU officials renewed optimism that a debt swap deal would be agreed this week which led a EUR/USD recovery and boosted Asian equity markets. Solid month-end exporter demand then appeared with the pair taking out $1.0620 stops following a strong NAB business confidence survey, to highs of $1.0645 before running into offers which stretch up to $1.0670. More are cited at $1.0700 with stops above. The recovery was also sparked by a failure of EUR/AUD to break up through the A$1.2475/80 resistance yesterday and further fresh sales this morning, pushing the cross back to A$1.2380 again. Aussie-yen pulled up from Y80.71 to Y81.21. AUD/NZD eased from NZ$1.2950 to NZ$1.2908.
EasyForexNews Research Team