Opened in Asia at $1.0378 after highs in NY of $1.0387 as the pair led yesterday’s risk rally following strong Chinese PMI data which led equities higher, supporting Gold and Silver, with Crude Oil also making solid gains on the back of further sabre rattling in the Gulf. This morning saw some hesitation from the open with the market again focusing on EU debt and a Guardian article that Greece could fall out of the Euro within 3 months if a new debt package wasn’t in place. AUD backed away from attempting a run at a $1.0400 barrier slipping
with the EUR/USD to $1.0323, the move compounded by profit taking after the recent sharp run down in EUR/AUD. The cross rallied from A$1.2574 to A$1.2620, before again heading lower to A$1.2587, leading a bounce in the AUD/USD back to $1.0357. AUD/JPY fell from early highs of Y79.72 to Y79.14, with Japanese exporters initiating the move.
AUD/NZD slipped from NZ$1.3150 to NZ$1.3102 before a bounce back to NZ$1.3125. talk of AUD bids $1.0300/10, with the top capped by the large option barrier at $1.0400 and the 200 day MA at 1.0416.
EasyForexNews Research Team