AUD/USD Analysis

The pair started at $0.7626 this morning with early interest on a speech by the RBA’s Christopher Kent. The market however showed little reaction to Kent’s comments, trading the aussie from $0.7627 to $0.7633 through the speech. The aussie gained modestly a few minutes after the release of Westpac-MI consumer sentiment survey, but the gains were limited to just $0.7645. There was some talk in the market that early aussie-dollar demand was driven by local corporate accounts but that ran into supply in the $0.7640/45 region from leveraged accounts. Note also $0.7644 marks the 50% retracement mark of the $0.7604 to $0.7683 range seen during European/US hours yesterday. Aussie-dollar retreated to $0.7625 after housing finance data were released but then spent the next few hours supported off $0.7625. Late morning action saw the aussie pressured lower and it then slid through a rumored $0.7600 barrier and set of stop-losses below, to reach $0.7592. It marginally extended the session low to $0.7588 but then saw a minor uptick in after the Chinese data out a few minutes ago to $0.7608, aussie-dollar last trades at $0.7604 but still hovering close to the session low, with stops then noted on a break below $0.7580.