Opened at $1.0735 and after a brief high of $1.0739, fell back sharply with the EUR/USD following the Moody’s ratings announcement. Comments from ECB’s Nowotny over Greece’s ability to meet its austerity obligations were also adding weight ahead of tomorrow’s meeting. AUD fell down on sales from Asian names through stops at $1.0720 and the move was further compounded by a selection of other AUD cross sales, which then triggered further stops sales through $1.0680 to lows of $1.0667. The BOJ announcement of further QE in the shape of Y15trln for JGB’s helped shore up the AUD with a bounce to $1.0695 as AUD/JPY demand emerged, but the pair remains fragile ahead of the european open. Bids are seen from $1.0665 down to $1.0650 with stops below. Offers start from $1.0720 up to $1.0750 with stops above. AUD/JPY soared from pre BOJ lows of Y82.76 to Y83.34. EUR/AUD bounced from A$1.2278 to A$1.2331 before settling around A$1.2315. RBA’s Debelle stated that rates were appropriate for the economy and Jan Business confidence rose to +4 from +3 in Dec with business conditions up to +2 from flat.
EasyForexNews Research Team