Opened in Asia at $1.0725 after lows in NY of $1.0715 following Fed Bernanke’s testimony which diminished QE3 expectations and led a run in precious metal sales and stocks as well as the euro-complex. Falls were somewhat cushioned by a EUR/AUD that traded down to lows of A$1.2371 from A$1.2502 highs in early Asia yesterday. AUD this morning has perked up with exporter demand leading the way higher accompanied by AUD/JPY demand, taking the spot up to $1.0740. Stronger Chinese PMI data countered earlier poor local Capex and housing data, and led a further rally to $1.0764 before settling around $1.0755. Bids are now seen in the $1.0710/20 area with offers sitting from $1.0785/00. Stops are also in place on a break of $1.0810 ahead of large offers at $1.0850. AUD/JPY pushed up from Y87.02 to Y87.46 on Japanese trust bank demand but later eased back to Y86.94. AUD/NZD was steady but firm through NZ$1.2851-1.2876. Focus today will be on the EU PMI and US mfg data which could lead to a relief rally in commodities and support the aussie further.
EasyForexNews Research Team