Opened in Sydney around $1.0584 after a strong rally in NY on Friday from $1.0532 to $1.0597 on the back of weaker US CPI, IP and confidence data which sparked some strong short-covering from the leverage community. Aussie found early demand from european names in Asia this morning which led to stops at $1.0610 being tripped to highs of $1.0614. The move also helped trigger stops in AUD/JPY up through Y88.55 to highs of Y88.64 after opening at Y88.34. AUD/USD ran into importer supply at the highs and slipped off to $1.0588 but has since picked up again to $1.0616 re visiting the mentioned offers. Bids now lie at $1.0550/60 with stops on a break down of $1.0545. EUR/AUD slipped back from A$1.2451 to A$1.2414 and AUD/NZD was mixed through NZ$1.2817-1.2851. RBA Governor Stevens addressed the AIC conference in HK, but failed to spark any life into the market, stating Australia was an attractive country for global portfolio outflows, but that benefits were offset by the aussie’s strength. Trading has been quiet since with many now awaiting the RBA minutes released tomorrow.
EasyForexNews Research Team