Opened in Sydney around $1.0533 after a sharp rally off yesterday’s european lows of $1.0426 on Fed Bernanke’s comments, which sparked risk on sentiment amid QE3 fears and led S&P to levels not seen since 2008. Commodity markets pushed sharply higher on a wave of USD weakness and AUD bounced to $1.0546 before running out of steam. The move was again exhausted in early Asia before a steady slip back to $1.0520, steadying ahead of a further fall to $1.0504. RBA’s Debelle stated current AUD levels were consistent with its terms of trade, although board member Corbett warned that manufacturing and retail sectors were struggling. AUD/JPY fell back from early highs of Y87.43 to Y87.01, but remains buoyed by Toshin talk. EUR/AUD continued the recovery from yesterday’s A$1.2624 lows; extending the rally from A$1.2667 to A$1.2711 before balancing around A$1.2700. AUD/NZD eased from NZ$1.2804 to NZ$1.2780. Aussie offers remain from $1.0530 up to $1.0550, with bids at $1.0500/05 and sell stops below $1.0500 and $1.0480.
EasyForexNews Research Team