AUD/USD opened the Asian session around $0.9705 and has so far traded in a $0.9674/$0.9719 range. After some moderate exporter buying interest that saw the rate trade to intra-day highs of $0.9719, sellers soon appeared with the rate breaking through $0.9700 following comments by Australian Treasury Secretary Martin Parkinson on Australian deficit. Earlier persistent bids camped around the $0.9700/05 area were taken out and the rate soon gave way amid selling pressure from the Japanese retail sector, triggered by a variation of margin calls which also resulted in sales of AUD/JPY. AUD/USD broke below $0.9695 with stops flushing the pair down to session lows of $0.9674, before reports of an Asian reserve manager lifting the rate back to $0.9684 and again buying in around $0.9692. Some traders cited the demand at those levels linked to bond auctions due later today and tomorrow. Some additional short covering has now edged AUD/USD back from its session lows, with the rate currently seen trading $0.9714 up 10 pips.
EasyForexNews Research Team