Opened at $1.0805 in Asia and headed up to $1.0818 on the back of AUD/JPY demand from Tokyo names, before meeting model fund supply and some profit taking from corporates. The pair then headed lower to $1.0785 as further profit taking surfaced, but remains largely underpinned by sales in EUR/AUD, which is again heading down to re challenge the lows seen in early Feb. The cross eased back from A$1.2346 to A$1.2320 and is some 300 pips lower from the highs seen at the beginning of the week. AUD/JPY continues to forge higher, attracting demand from Japanese trust banks, hitting fresh weekly highs of Y87.98 from Y87.59. Strong resistance just ahead of a barrier at Y88.00 halted further gains and the pair fell back before settling around Y87.90. AUD offers are now stacked up through $1.0820/50 with some large stops poised for a break of $1.0860 ahead of a barrier at $1.0900. Bids start from $1.0780 and run down to $1.0750/55 with talk of stops now building down through $1.0710/15.
EasyForexNews Research Team