Opened in Asia at $1.0539 after posting lows in NY of $1.0485 following strong retail sales data and lack of QE3 hints from the Fed in the FOMC which painted a more upbeat picture for the US economy. A strong rally in equities led the recovery together with a sharp reversal in the EUR/AUD from A$1.2520 to A$1.2395. Aussie fell back in Asia this morning from early highs of $1.0556 to $1.0513 on some heavy sales out of Tokyo, but exporter demand at the lows together with some short covering, led a bounce back to $1.0549. EUR/AUD slippage continued with a fall from A$1.2420 to A$1.2391. AUD/JPY built steadily higher from Y87.34 to Y87.78 as CTA accounts piled into dollar-yen, along with some strong Tokyo fixing demand. Aussie-kiwi was steady but firm in a NZ$1.2813-56 range. AUD bids now sit at $1.0510/20 with stronger support down at $1.0475/80. Stops are now in place on a break of $1.0470. On the topside, offers remain in the $1.0570/80 bracket, with buy stops up through $1.0600.
EasyForexNews Research Team