The pair’s pulled back from the 1.0500 level again following yesterday’s FOMC minutes which pointed to a possible earlier finish to QE in the US; along with talk of some RBA commercial selling interest and profit taking in the wake of the ‘fiscal cliff ‘decision.
The break down in Asia prompted a few sell stops through 1.0450 but bids have surfaced in the 1.0430/40 zone ahead of larger down at 1.0400/10 from sovereigns and real money. On the topside offers remain up at 1.0450/60 and larger at 1.0500/20 from funds, importers and corporate names.
AUD/JPY and AUD/NZD are also lending support but offers up at 91.80/90 and 1.2680/00 are likely to cap in the short term
AUD/USD’s currently around 1.0447
