Opened in Asia at $1.0389 and after an early rise to $1.0405 was pushed lower on cross sales and EUR/AUD strength, led by AUD/JPY. Traders are getting nervous of some very large long positions built on the back of expected Toshin issuance and the cross fell back sharply from early highs of Y86.27, tripping stops down through Y86.00 and Y85.60 to lows of Y85.50. Very large CTA stops are now reported on a break of Y85.00. This pulled AUD/USD quickly off the highs and prompted heavy selling from macro/leveraged names through cloud base support at $1.0355 to lows of $1.0341 before solid demand appeared leading to a bounce to $1.0374. Concern over losses from Chinese steelmakers is also weighing heavily on the pair. EUR/AUD continued its rapid ascent with a rally to A$1.2871 from A$1.2802 and AUD/NZD recorded fresh multi-month lows of NZ 1.2674 from earlier highs of NZ$1.2720. GBP/AUD tracked the EUR/AUD extending quickly up to A$1.5363 from A$1.5274. Treasurer Swan said that Australia’s economy was growing around current trends and that it’s long term outlook was optimistic.
EasyForexNews Research Team