Opened in Asia at $1.0553 and after an early high of $1.0573 fell back sharply on a weaker q/q Q4 GDP report to lows of $1.0509 before encountering exporter, option related and asian sovereign demand. The move was also saved from further falls by an announcement that China would boost its energy and raw material imports adding some support to the commodity currencies as aussie recovered to $1.0561. The small blip in risk appetite was however short lived and the pair slipped back to $1.0532. Treasurer Swan said GDP reflected patchiness in the economy, but it wouldn’t deter a surplus due to strong growth in exports, despite the aussie strength weighing on the economy. AUD/JPY opened at Y85.37 and after early highs of Y85.44 slipped to Y84.76 on weaker headline GDP data, before recovering to Y85.37 and later settling around Y85.00. AUD/NZD fell back from NZ$1.3004 to NZ$1.2911. EUR/AUD built higher from A$1.2412 to A$`1.2486 on the GDP but later eased back to A$1.2450. Dollar bids are now seen in the $1.0505/15 region ahead of a barrier at $1.0500. Offers remain up at $1.0570/80 and $1.0605/10.
EasyForexNews Research Team