Opened in Asia at $1.0395 having been pulled higher in the NY session from $1.0360 lows as the Canadian dollar rose sharply following hawkish signals from the BOC. Japanese investors opened the Asian session with strong AUD/JPY and Toshin demand, lifting the cross from early lows of Y83.98 to Y84.73 and pulling AUD/USD up with it to highs of $1.0416. Real money funds and an Asian reserve manager then sold the aussie back down to $1.0389 with talk the move was related to the earlier A$700mio bond auction. Comments from China’s Zhu helped underpin, saying that growth would pick up in Q2 2012. AUD/NZD had a quiet session drifting between NZ$1.2647-66, and EUR/AUD was stable through A$1.2609-38. Australian Treasurer Swan backed increased resources for the IMF saying Europe needed more commitment to it, and reiterated that China growth was still substantial. Aussie bids lie down at $1.0350/60 with stops set on a break with offers aligned from above $1.0420 up to $1.0450.
EasyForexNews Research Team