Opened in Asia at $1.0689, picking up strongly from lows in NY of $1.0629 as risk appetite returned late in the session on reports that Greece’s Samaras would after all sign the austerity agreement. The move seen bolstering chances of a Greek bailout despite earlier announcements from EU’s Juncker that the scheduled meeting was postponed until Monday with just a conference call now in place for today. AUD pushed up to $1.0705 before slipping back to $1.0668 as AUD/JPY sales weighed, despite a pick up in USD/JPY. Strong offers ahead of Y84.00 in the cross eventually gave way as China’s Zhou added to risk appetite with supportive EU comments, which led a stronger AUD/USD rally back through yesterday’s $1.0733 high to $1.0752. AUD/JPY was subsequently pulled up through a barrier at Y84.00 triggering stops above to a 6mth high of Y84.40. EUR/AUD also assisted the AUD recovery, heading down to A$1.2250 from A$1.2289. Aussie resistance is now seen towards Monday’s high of $1.0778 and $1.0800 with large offers now seen up at $1.0820/25.
EasyForexNews Research Team