Opened in Asia at $1.0670 having been dragged lower yesterday on the back of weaker equity and metal prices, and a EUR/USD that fell on weaker european PMI data. Aussie hit lows of $1.0656 in NY yesterday and lagged the euro recovery later on stronger ISM data, as EUR/AUD rallied back up through A$1.2400. The pair picked up to $1.0691 on C/A data, but the move was short lived as China growth fears, sales from a US fund and comments from PM Gillard that a strong AUD was weighing on business pushed the pair to $1.0640. RBA then left rates unchanged with comment that the easing bias would be maintained, prompting a trigger of $1.0630 stops to lows of $1.0604. EUR/AUD pushed higher from early lows of A$1.2370 to A$1.2441 in a continuation of yesterday’s rally, and AUD/NZD jumped to NZ$1.3067 from NZ$1.2991 following comments from S&P that investors kiwi risk appetite was likely to wane. Support for aussie is now seen at $1.0590/00 with a break below pointing down towards the $1.0525/30 lows seen at the end of January.
EasyForexNews Research Team