Opened in Asia at $1.0383 having been bullied to lows of $1.0303 in NY last seen in mid January, on year-end AUD/JPY flows. An afternoon rally in stocks and EUR/JPY then led EUR/USD back up to $1.3300 which in turn boosted the AUD/USD again. Asia saw some AUD/JPY fixing supply weigh the aussie back down to $1.0367 as the cross plunged to Y84.89 from Y85.68 on US black box fund sales in USD/JPY. The yen complex then turned on heavy Japanese lifer buying of EUR/JPY, which pulled AUD/JPY sharply higher again to Y85.60. This helped aussie back up through $1.0400 to highs of $1.0415. EUR/AUD pushed up from early lows of A$1.2804 to A$1.2853. GBP/AUD fell back from early highs of A$1.5391 to A$1.5347 before steadying around A$1.5370. AUD/NZD was subdued in a NZ$1.2689-1.2709 range. Total credit to the private sector rose 0.4% m/m in February vs a 0.2% rise in January. AUD has some buy stops now set on a break up of $1.0415. Strong offers sit above at $1.0445/50 and $1.0500/15. Bids are now seen towards the session lows at $1.0365/75, ahead of sovereign bids towards the $1.0300 barrier.
EasyForexNews Research Team