The AUD/USD took the brunt of today’s sharp drops in metals and commodity prices, particularly the run against copper and crude oil. Aussie-dollar opened at $0.8166 early this morning, precisely in the middle of a $0.8130 to $0.8197 range seen yesterday, and initially gained as solid demand noted at the $0.8125/30 region continued to thwart any move lower. Aussie-dollar spiked up to a $0.8176 in early dealings after reported comments from the Fed’s Kocherlakota. It then held near there and showed barely any reaction to today’s job vacancies numbers from the ABS, which are considered second-tier. The pair however dropped sharply in the late morning in a delayed response to the falling price of copper. The move ran the aussie through reported demand at $0.8125/35 and then through $0.8103 (Jan 9 low) for a low of $0.8088 so far. It last traded at $0.8. Overall, the focus is on tomorrow’s Australian jobs report while stops are noted below $0.8120, $0.8080, $0.8025 and $0.8000 and on the topside above $0.8200, $0.8275 and $0.8300. Rallies toward $0.8200 are also expected to attract fresh supply.
