Closed in NY at $1.0434 after pulling back from a session high of $1.0449 to $1.0428. Rate initially drifted down to retest the pullback lows in NY at $1.0428 before picking up fresh demand via Aussie-yen (as yen pared Tuesday gains). Rate moved up to retest strength of the $104.50 area with the eventual break and clear above exposing stops between $1.0465/75. Move through this area took rate on to $1.0480 before a second wave of demand ahead of Europe extended move to $1.0490. Rate has eased off to $1.0470 in early Europe. Move up suggested mainly driven by short covering, CitiFX Wire noting that their flow data actually showed sellers over buyers in the move up with real money providing the main supply countering system and local corporate demand. Traders note demand into broken resistance at $1.0450, with stronger demand seen between $1.0420/00. Offers to $1.0500 with the Aug23 high at $1.0545 seen as an upside target.
EasyForexNews Research Team