Another session of large moves for the Aussie today after it opened at $0.9456. Early dealings were confined to a $0.9435 to $0.9450 range with the market initially retracing part of the overnight gains, which saw the pair trade a high of $0.9463. The aussie traded the $0.9435 low this morning, taking its cue from the kiwi’s retreat after the RBNZ signaled pause in its rate hike cycle following today’s 25 bps rate hike. The main focus this morning was the HSBC China flash PMI and expectation of an upbeat reading kept aussie-dollar supported. The results showed the flash PMI rose to an 18-month high and that drove the aussie sharply higher as risk assets rallied. Aussie-dollar ran up to a $0.9471 high but again encountered selling from $0.9480. The move fizzled out and aussie-dollar retreated toward $0.9450 after that. Aussie-dollar was last at $0.9449. Initial aussie-dollar support meanwhile is noted at $0.9425 with stops below, with further demand then seen toward $0.9400. Beyond those $0.9480 offers, dealers are wary of larger sell orders in the $0.9500/05 resistance zone, some of which are believed to be by official accounts.
