The pair started at $0.7810 this morning, toward the upper end of yesterday’s $0.7748 to $0.7835 range. It spent the initial few hours mostly sidelined and stuck in a $0.7793 to $0.7806 range as the market waited for the release of the NAB business survey and Q4 home prices as well as China’s inflation data due after that. Aussie-dollar showed little reaction to the local data releases and held around $0.7801 compared with $0.7798 before the release. The release of China’s CPI and PPI data was the catalyst for the aussie’s subsequent move, with aussie-dollar initially sliding to a $0.7792 session low immediately after. The pair rallied from there after economists said the data reinforced expectations of further easing in China, and aussie-dollar then ran up to $0.7825. The aussie stayed supported form there and talk of demand from leveraged accounts then boosted the pair up further to $0.7842 high. The aussie then ran into sellers from $0.7850 which capped the move. It last traded at $0.7818. Those sellers are said to be intact from $0.7850, up to $0.7880, with stops then expected on a break above that, while tech resistance is seen at $0.7881, 38.2% fibo retracement of the $0.8295 to $0.7626 fall.
