Recovered strongly in NY last night from lows of $1.0533 on the back of a possibility that the Fed may buy bonds and press reports that Greek bondholders had largely signed up to the debt swap. AUD rallied to $1.0593 before closing at $1.0583. Asian this morning saw further whip-saw moves with the pair plunging from early highs of $1.0590 to $1.0528 on poor employment data with the jobless rate rising to 5.2% as losses totalled 15.4k in Feb after Jan gains of 46.3k. Expectations were for a rise of around 5k. Asian sovereign bids and talk of a China RRR cut then turned the market from the lows to $1.0570 and the move was later extended by buying from US macro funds breaking through stops at $1.0600 to $1.0615. AUD/JPY pushed up from early lows of 85.54 to Y86.29 amid some talk of Uridashi related flows. EUR/AUD has again stalled into resistance above A$1.2450 easing from highs of A$1.2476 to A$1.2411 as optimism over the Greek PSI gathers pace. AUD/USD bids are now seen from $1.0565/70 and $1.0525/30 with offers from $1.0635/40 and $1.0660/65.
EasyForexNews Research Team