The pair closed in NY at $0.8756 after another volatile session that saw it trade a $0.8686 to $0.8829 range. Early market action this morning was not much different with the aussie sliding to an early low of $0.8734 as the kiwi dropped sharply to $0.7878 from around $0.7959 following the erroneously issued RBNZ statement. Aussie-dollar rebounded as kiwi also recovered back toward $0.7955 following a retraction of the statement. Aussie-dollar marched up through $0.8760 and $0.8770 and paused at $0.8785. Aussie-dollar gains extended to a $0.8792 high soon after before getting dragged back down by aussie-kiwi’s reversal off its highs. The pullback saw aussie-dollar give back all of the morning’s recovery, and aussie-dollar then retreated to an early afternoon low of $0.8738 ahead of the European open. The aussie was last at $0.8740. Looking ahead, repeated bounces from ahead of the $0.8643 2014 low has provided some comfort but only a close above $0.8898 would then shift focus to the $0.9087-$0.9114 region. Stops noted above $0.8900 and below $0.8640.
