The AUD is trading off of their worst levels Wednesday, buoyed by improving Chinese and U.S. manufacturing data and a sharp rally on Wall Street. The rate managed to hold above $1.0300 yesterday, after the RBA surprised markets by lowering its key rate 50bps to 3.75%. Some traders remain surprised that the rate did not test April’s lows around $1.0226/$1.0247, but the local currency appears to be well supported amid sovereign funds entering the market to buy dips and showing some appetite to diversify away from the USD. Reasonable demand is still seen on the approach to $1.0300, with additional bids seen around the $1.0260/$1.0265 area. Stops are touted firstly at $1.0240 and also $1.0225 which is also the next options barrier. Prices have been in a tight range so far during Asian trading hours, with a high so far of $1.0351 and a low of around $1.0325. AUD is currently trading near session highs at $1.0348 up 14 pips on the session.
EasyForexNews Research Team