Opened at $1.0755 after benefiting from the massive risk rally in NY which saw the pair leap back from lows in Europe of $1.0646 to $1.0774 in NY. The pair has been assisted by some very strong demand in crosses notably the AUD/JPY, and sales in EUR/AUD. This morning’s trade has been largely governed by strong Toshin related demand in AUD/JPY which has given the cross another leg up from Y84.67 to highs of Y85.50 seen after the Tokyo fixing. AUD broke up again through the NY highs tripping stops through $1.0780 to $1.0801 from early lows of $1.0746, before easing back on some profit taking to $1.0767. AUD/JPY slipped back to Y85.11 but remains well underpinned ahead of the European open. EUR/AUD eased back from early highs of A$1.2219 to A$1.2164 but later recovered to A$1.2194. AUD/NZD fell from NZ$1.2917 to NZ$1.2850 before settling around NZ$1.2870. AUD/USD buy stops are seen on a break of $1.0800/05, but some reasonable offers are currently sitting ahead at $1.0790/00. Bids are in place at $1.0745/55.
EasyForexNews Research Team