AUD/USD opened a $1.0738 in Sydney, and after an initial high of $1.0743 was sold off by european names and AUD/JPY cross sales to $1.0703 following comments from China’s PM Wen at the National People’s Congress that China’s growth target was being lowered to 7.5% from 8%. The ABS’s report that Q4 corporate profits fell 6.5% in December also weighed on sentiment. Treasurer Wayne Swan said no action was needed, but that increased productivity could ease pressures on the AUD/USD. AUD/JPY dropped from early highs of Y87.94 to Y87.02 on the Wen comments, having earlier backed away from the Y88.00 large offers that rest from last week, and feeling the weight of some heavy USD/JPY profit taking towards the end of the Asian session. EUR/AUD pulled up steadily from lows of A$1.2279 to A$1.2325 but remains in a downward trend having failed to break convincingly through A$1.2600 last week. Aussie-kiwi was steady through a tight NZ$1.2918-1.2946 range.
EasyForexNews Research Team