AUD had a poor day as it traded to a series of new recent lows to eventually post a bottom at $0.8224, at that stage off 69bps on the day. A stronger USD and weak Australian data in the form of the NAB Business Survey for November hurt the currency, as did a weaker energy complex through Asia. USD strength began on the WSJ article from Jon Hilsenrath, that suggested the FOMC may drop the “considerable time” phrasing sooner rather than later. Despite this not being anything new for this author, the FX markets decided to react, whereas rates markets virtually ignored it. AUD/JPY was also a major mover, slipping through Y100 to sit just off it’s lows slightly under Y99. Bids seen around $0.8200 vs. the USD but the 2010 low at $0.8070/90 looks set to be a target; sellers above at $0.8315/20 then into $0.8340/50 but the theme seems to be sell any rallies at all today, and that seems likely to continue into Europe. AUD last at $0.8235, down 59bps.
