Opened in Asia at $1.0754 having put in a strong recovery in NY from lows of $1.0650 seen in Europe. The recovery move was largely seen on some heavy selling in EUR/AUD after posting earlier highs of A$1.2619 in Asia yesterday. The pair plummeted during the European and NY sessions to A$1.2428, and has since remained below the break-out level of A$1.2480 seen on Friday which sparked the rally into last weekend. Charts now point to an outside range yesterday which is shifting pressure again to the downside on the cross. Aussie-yen soaked up some initial heavy selling from Japanese names from Y86.70 to Y86.11 but quickly found dip buyers and bounced back to Y86.62. AUD/USD slipped to $1.0744 but soon found support again and moved back up through earlier highs of $1.0768 to $1.0777 remaining firm ahead of the European open. Offers are seen ahead at $1.0790/00 with stops building on a break up of $1.0850. GBP/AUD was steadying this morning in a A$1.4696-A$1.4728 range, but still reels from yesterday’s sharp drop from A$1.4892 in tandem with the EUR/AUD.
EasyForexNews Research Team