Opened in Asia at $1.0785 and after an initial early high of $1.0790, headed lower. The fall was instigated by further buying from CTA’s in the EUR/AUD cross which has staged a strong rally from Tuesday’s all time lows of A$1.2133 and hit highs this morning of A$1.2387 after tripping stops up through A$1.2320. Weak Chinese data showing a sharp slow down in trade, particularly in iron ore imports, also weighed heavily on the AUD/USD, with stops tripped down through $1.0730 to lows of $1.0701. Stops reside just under $1.0700 ahead of strong demand down at $1.0650. AUD/JPY was hit equally hard despite an early push higher in the USD/JPY on importer demand. The cross fell back quickly from Y83.83 to Y83.10 and is showing little sign of bouncing ahead of the european open. AUD/NZD also fell back from early highs of NZ$1.2942 to NZ$1.2890 before settling around NZ$1.2900
EasyForexNews Research Team