Opened in Asia at $1.0805 having consolidated the earlier sharp jump following the RBA’s announcement to leave rates on hold which caught the market wrong-footed, and led a sharp rally to highs of $1.0822 in Europe yesterday. Further gains in AUD/USD following the surge in optimism on the back of a hopeful conclusion to the Greek debt crisis were scuppered by some aggressive profit taking in EUR/AUD which leapt from all time lows of A$1.2133 in Europe, to A$1.2284 in NY. That move has since continued this morning in Asia to A$1.2289, and has tempered any further gains in AUD/USD, eventually pushing the pair to lows of $1.0783 on some swiss name sales before recovering later to $1.0804. Strong Aussie bids are seen towards $1.0760/70 from model funds, with stops now cited on a move up through $1.0825. AUD/JPY rose steadily from Y82.85, through Y83.00 offers, to Y83.22 but further gains were later hampered as the cross also felt the weight of the EUR/AUD buying. AUD/NZD was comparatively quiet through a tight NZ$1.2904-40 range.
EasyForexNews Research Team