The pair opened at $0.8405 this morning, just above the US session low of $0.8397, and ran into early weakness due to the US dollar’s early gains. Aussie-dollar retreated to an initial $0.8386 low and then crept back up to $0.8400 a few minutes before the release of Australia’s retail sales and trade data. The data came in above expectations and triggered a rally in the Australian currency, with aussie-dollar jumping through $0.8400 for a high of $0.8429. Profit-taking interest as well as resting offers from $0.8450 then kicked in and drove aussie-dollar steadily back down from that high. It slipped back to the initial low and then extended the low to $0.8382, which marks a fresh 4-year low for the pair, in the late morning as rumored system accounts took aim at sell-stops further down and as dollar-yen found a fresh boost through earlier highs. Aussie-dollar was last at $0.388 with strong demand noted just below at $0.8380 and $0.8350. Initial focus remains on the July 6 2010 low of $0.8317 with overall focus on $0.8068-84 where 2010 lows are located.
