Been watching this cross closely this year and after Tuesday’s 1.2133 low it’s been all one way with a break up through 1.2400 this morning. Weak China trade data overnight,particularly the drop in Iron ore imports, is sucking the life out of AUD/USD today but there are solid bids down at 1.0650 apparently, and there was good corporate buying around the lows of 1.0679 earlier.
CTA’S and hedge funds have apparently been the main buyers of the cross, so worth keeping an eye out now for a break up through 1.2475/85, for a stronger move back up towards the 1.3100 area.