AUD/USD opened in Asia around $0.9847 and has been observed in a range of $0.9775/$0.9856 so far. The rate ground off early to levels of around $0.9811 pressured by risk aversion and evaporating hopes for a Chinese stimulus package. Weaker than expected April retail sales came in below expectations at -0.2% versus a forecast of +0.2%, causing the rate to extend its losses through $0.9800 as stops triggered amid some Japanese named accounts on the sell side. Aussie sold off to session lows of $0.9775 before a moderate bounce to around $0.9790/95 where some additional speculators were seen to be sellers. Prices have since tentatively edged back to highs of $0.9802, with the rate currently trading $0.9797, down 51 pips on the session.
EasyForexNews Research Team