Opened on a firmer footing this morning in Asia after being pressurized for a large part of yesterday’s session on Chinese trade concerns and a strong rally in the EUR/AUD. AUD/USD fell to $1.0474 technical support in Europe from $1.0576 but rallied later in the day to $1.0511. The move was extended this morning, assisted by a jump in the S&P futures, tripping stops up through $1.0545 to $1.0561. AUD/JPY buying was a major contributor, with Tokyo names seen short covering ahead of the BOJ meeting where further QE mutterings were doing the rounds. The cross popped up to Y86.50 to Y87.04. EUR/AUD fell back from early highs of A$1.2520 to A$1.2483. AUD/NZD eased back from NZ$1.2854 to NZ$1.2816. AUD/USD appears to be well supported by exporter bids towards $1.0510/15 and AUD/JPY demand at Y86.60/65. AUD/USD offers sit up around $1.0575/80. Home loan financing fell 1.2% in Jan from +2.3% in Dec. Feb business confidence fell to 1 from 4 in Jan relinquishing most of the recent months gains, but this had little noticeable impact on pricing.
EasyForexNews Research Team