AUD/USD Analysis

The pair opened in Sydney at $0.7711 toward the upper end of the $0.7585 to $0.7732 range witnessed during European and US trading hours, profit-taking on long US dollar positions cited as the main theme. Early market action kept the aussie holding mostly in a $0.7700 to $0.7710 range in the initial hours of the day but US dollar gains gnawed away at aussie support and the rate then fell through $0.7700 as the euro also slipped. Aussie-dollar ran down to a $0.7686 low but then managed a minor rebound to $0.7707 toward the late morning. Minor demand has been noted at the US low of $0.7680 with support then seen down at $0.7666, the 38.2% retracement of the $0.7560 to $0.7732 rise. Noted expiries at $0.7645 and at $0.7700 are likely to also have some influence on trade today in the absence of any major Australian economic data release.