Opened at $1.0310 after highs yesterday of $1.0337, but remained firm in early trading this morning ahead of the Chinese GDP release. Leveraged buyers and some sovereign demand picked the dip to $1.0302 and took the pair up through yesterday’s $1.0337 highs to $1.0343 before stalling. The better than expected GDP data and firming bourses then encouraged short covering with another leg up to $1.0398 before barrier protection offers stalled the move. Main buyers later were real money accounts and asset managers who are tracking strong Australian bond demand on the back of EU concerns. A break of the barrier at $1.0400 targets resistance at $1.0410 (200day MA) before a move towards further resistance at $1.0446/48 (highs Nov3, Dec9). EUR/AUD continued its downward track with falls to fresh all time lows of A$1.2247 from A$1.2285. AUD/JPY posted solid gains from Y79.11 to Y79.76 despite dollar-yen easing to Y76.68 from Y76.88. AUD/NZD also pulled up from NZ$1.2976 to just eclipse yesterday’s highs, to NZ$1.3017, as the NZD/USD ran out of steam on approach to $0.8000.
EasyForexNews Research Team