Opened in Asia at $1.0765 on a firm footing following yesterday’s high closes in the DJIA and S&P, as risk appetite returned ahead of the ECB LTRO operations today. The pair picked up strongly in early trade on AUD/JPY demand out of Tokyo, despite weak housing data (Q4 construction data which fell 4.6%, but followed a strong rise in Q3) and retail sales that came in on expectations. Aussie took out $1.0790/00 stops and the rally continued to $1.0824 before encountering heavy supply. Large stops are now building on a break of $1.0850. Support is now seen at $1.0790/95 and $1.0760/65. AUD/JPY rallied from early lows of Y86.60 leaping up to Y87.20 before later falling back with USD/JPY to Y86.87. EUR/AUD fell back again from A$1.2502 to A$1.2456, having failed to rally past A$1.2525 yesterday. GBP/AUD was a similar tale, slipping to A$1.4716 from A$1.4776, as aussie generally responded to the surge in risk, firming bourses and strong precious metal prices.
EasyForexNews Research Team