The cross has punched clearly through the 1.2550 level and is now looking to head towards the Oct 24/23 highs of 1.2648/73, which in turn has put the brakes on the AUD/USD bulls.
Real money have apparently been steady sellers of the AUD/USD over the last couple of sessions and recent comments from RBA Governor Stevens over growth have also added fuel to the bears cause, but talk of sovereign demand ahead of 1.0500 has so far halted further weakness (1.e 0.7500)
On the flipside demand in AUD/JPY has been countering the overall effect, as has Stevens other comments that there was no’ totemic significance’ to reduce the bank’s cash rate below its current record low of 3% and that the ‘AUD was unlikely to return to the low numbers that we have been accustomed to’ before 2007.
Order wise….Bids lie at 1.0500/10 with weak sell stops below ahead of bids 1.0460/70. Offers now seen at 1.0540/50 with more ahead of a barrier at 1.0600. Buy stops in place above through 1.0610 ahead of offers/tech 1.0620/25 (Sept 14 high 1.0625)
AUD’s presently static in the low 1.0520’s, with the cross just off recent highs of 1.2611, at 1.2608
