Opened at $1.0694 in Asia this morning and headed up in early trading from $1.0688 to $1.0718 on the back of some strong AUD/JPY buying which took out a Y87.00 barrier to highs of Y87.48, before profit taking set in on Tokyo’s arrival with a fall back to Y86.45. This led a sharp fall in the AUD/USD, which together with a US custodial name pushed the pair back down through $1.0700, taking out some stops through $1.0685. The leadership contest result and weaker Asian bourses then helped a small move lower again through stops at $1.0670 to lows of $1.0658. Ex-PM Rudd only secured 31 votes against PM Gillard’s 71. AUD later recovered to $1.0696. EUR/AUD continues to consolidate it’s break out last week through the A$1.2480/00 area, with further gains from A$1.2565 to A$1.2619, before easing back later to A$1.2579. AUD/NZD was tight through a NZ$1.1.2775-1.2806 range. GBP/AUD was a similar story to the EUR/AUD pushing up to A$1.4883 from A$1.4830 before heading back down to A$1.4838. AUD/USD bids are now seen in the $1.0660/70 region with initial resistance up towards $1.0715/20.
EasyForexNews Research Team