Looks like the intraday market was caught overly short and the AUD has rallied sharply after relatively poor GDP numbers. Remember that prior to the Treasurer’s comments at the weekend, the market had been expecting a contraction of 0.3%. Well known RBA watcher Terry McCrann still seems to think that a July hike is a possibility, but I can see absolutely no possibility of that happening now.
There was some mention this morning of sell orders at 1.0735/40 and again between 1.0750/60 and we are getting close to these levels at present.