Opened in Asia at $1.0459 after trading down from $1.0558 to $1.0453 on some heavy leveraged and corporate supply particularly through the EUR, JPY and Canada crosses. There has been little change in tone this morning with further EUR/AUD demand weighing on the AUD and steady year-end yen demand pressing AUD/JPY lower. Aussie slipped from early highs of $1.0468 to $1.0421, as EUR/AUD climbed from A$1.2720 to A$1.2789 on strong Japanese demand, and macro AUD/USD sales. AUD/JPY slumped from Y87.06 to Y86.36. AUD/NZD also continued its move south, hitting fresh 5 month lows of NZ$1.2733 from NZ$1.2766. AUD/CAD fell from C$1.0415 to C$1.0381. The RBA review was largely optimistic but failed to offer any real support, with Treasurer Swan seeing continuing growth in mining investment and the country now less exposed to European debt issues; but noted that risks still remain. Aussie bids are seen at 1.0420 from exporters with further demand down at $1.0400 close to the 200 day MA at $1.0399 and 100 day at $1.0379. Offers start from $1.0445/50 with larger towards $1.0490/00.
EasyForexNews Research Team