AUD/USD has spent the majority of the Asian session in a fairly narrow $1.0044-$1.0083 range so far, with the pair currently trading $1.0064 down 18 pips from yesterday’s close of $1.0082. AUD/USD had already been subject to some selling pressure after JP Morgan’s Chief Executive Officer Jamie Dimon announced that the bank had taken a $2bln loss on a synthetic derivative position right on the NY close. AUD/USD plunged lower from $1.0090 to $1.0049 before some CTA names were reported to lift the pair back to around $1.0067. Some moderate Tokyo fixing demand saw the pair rise to $1.0083 before prices came under pressure again once the Tokyo demand faded. Some euro selling, initiated on the CME, saw AUD/USD post some more losses with the pair trading down to session lows of $1.0044. Chinese April CPI data came in at +3.4% y/y in line with median consensus which saw the rate rise to $1.0069 from $1.0057. The pair has moderately recovered to $1.0064 amid a mild recovery by the euro.
EasyForexNews Research Team