The pair started in Sydney this morning at $0.7777 after offshore markets witnessed a $0.7740 to $0.7851 range and with last night’s China rate move taking the spotlight. Early euro weakness stemming from the ECB/Greece news weighed on the aussie but gains were contained at $0.7753 as euro-aussie also took a tumble on the Greek news. Aussie-dollar climbed to a $0.7778 but was pulled back down again after the release of soft Australian retail sales data. Aussie-dollar dropped to $0.7751 and then extended the low through the $0.7739 support level, as funds joined the selling against the aussie, to $0.7734. From there, rumored demand in the low-$0.7700 region shored up the aussie and it rallied again as Japanese accounts also stepped in to buy aussie-yen up. The rebound took the aussie to a new high for the session at $0.7788. It last traded at $0.7781 with resistance then noted at $0.7854 (Jan 26th low).
