Opened in Asia at $1.0607 in a relatively quiet start but headed higher on the release of RBA minutes that pointed to much that was said in the post RBA meeting statement, but hinted that dangers to the economy from the EU debt crisis had subsided somewhat. AUD picked up to $1.0625 but the rally was short lived as comments from BHP that China’s insatiable demand for iron ore may be falling led a panic sell-off in AUD/USD. The pair fell sharply to $1.0585 meeting some Asian reserve bids, but this then gave way as EUR/AUD demand surfaced, with AUD/USD then filling some bids around $1.0570 to $1.0550 before sizeable corporate bids surfaced which led a weak bounce to $1.0580. The pair remains under pressure ahead of the european open and a break of $1.0550 is seen to trigger stops ahead of next tech support at $1.0510. AUD/JPY was hammered lower in the move from Y88.57 to Y88.09 and is heading for stops aligned just under Y88.00. AUD/NZD fell back from NZ$1.2853 to NZ$1.2805. EUR/AUD jumped from A$1.2463 to A$1.2534.
EasyForexNews Research Team