Some support for the AUD this morning due to:
- Market chatter of ‘risk-back-on’ now that the Fed-minutes induced sell off seems to have run its course
- A weekend newspaper report in Australia that the banks may cut mortgage interest rates, thus reducing the pressure on the RBA to cut rates. (Note the talk is of a 6 bp cut. Thats, ummm, not much. Every bit helps, of course, but it would save the average mortgage holder about $13 a month. I hope Glen Stevens can contain his euphoria.)
AUD/USD levels for today:
Topside does have a steady stream of offering interest:
- 1.0525/30
- 1.0510/20
Downside:
- Initial bids on the day at 1.0470/75
- 1.0455/60 bids but stops below
- 1.0410/20
- Around 1.0400 is good support
