Opened the new week at $1.0375, and after very early highs of $1.0387 settled around $1.0380. Concerns over China’s band widening of the Yuan, negative weekend press on the ECB and Germany from Sarkhozy, calls for the IMF’s warchest to be bolstered from ECB Asmussen and a re-run of Moody’s Friday’s comments over European bank ratings all led a risk-off session with Asian equities fallingin early trade. AUD fell sharply on some cross related sales to lows of $1.0309 before meeting exporters bids and settling around 1.0320. Traders are now eyeing tomorrow RBA minutes release. AUD/JPY fell back from Y84.01 to Y83.41 and EUR/AUD picked up from A$1.2590 to A$1.2624. AUD/NZD was stable in a NZ$1.2573-00 range.There has been little signs of a bounce so far and AUD/USD remains on a heavy footing but talk is of strong bids ahead of a $1.0300 barrier with offers sitting up towards $1.0340/50 and larger supply from $1.0380.
EasyForexNews Research Team