Opened in Asia at $1.0597 after a strong recovery from NY lows of $1.0444 back to $1.0620 following the strong risk rally after the FOMC pledged continued low rates until 2014 and the likelihood that QE3 was just round the corner. Talk yesterday of a 25bp cut in rates may be doing the rounds after yesterday CPI number but this has failed to deter the aussie bulls who still see the currency as a strong risk favourite. The pair has taken a breather this morning as the country observes Australia day and has traded a tight $1.0588-1.0623 range. AUD/JPY continues to head higher and closed last night above the 200 day MA around Y81.54, jumping to highs of Y82.48 in NY. Further gains were seen this morning to Y82.55 before settling around Y82.45. EUR/AUD continues to be thwarted by heavy resistance above A$1.2450 and fell back again in Asia this morning to A$1.2343 before balancing around A$1.2350. AUD/NZD pulled up from early lows of NZ$1.2949 to NZ$1.2985. Aussie real money bids are seen towards $1.0550/60.
EasyForexNews Research Team