Opened in Sydney with a small gap down to $1.0641 from a NY close of $1.0657. Weekend comments from Germany’s Schaeuble and Germany’s recommendation for an appointment of a European” budget commissioner” led to a sell-off in EUR/USD which along with profit taking in AUD crosses, a lower Yuan fix and a falling Shanghai composite, combined to
lead AUD lower. The pair fell to $1.0574 before recovering to $1.0590. EUR/AUD and GBP/AUD bounced from A$1.2415 to A$1.2455, and A$1.4762 to A$1.4858 respectively. Bank trade recommendations to sell AUD/CAD are also adding weight to the AUD/USD as recent near 15yr cross highs look overextended, together with a slip back in Gold and crude oil prices this morning. Aussie-kiwi eased from NZ$1.2932 to NZ$1.2892 before settling around NZ$1.2910. Aussie dollar has bids $1.0560/70 with stops seen on a break down of $1.0550. AUD/NZD offers now lie up at NZ$1.2930/50.
EasyForexNews Research Team