AUD/USD not giving up on that 1.0500 barrier just yet…

Author: Pete Jackson | Category: News

Author: Pete Jackson

Just edged back from a recent days high of 1.0492, but have a feeling  the grind may continue higher with EUR/AUD heading back to wards o/n lows around 1.2458.

Another story in Reuters this morning highlights the  recent IMF data  showing  rapid growth in global reserves over the last 10yrs  but the USD share falling back to around 62% as others have risen 10 times to around $310 bln. AUD and CAD stand out  as 20 reserve managers  , particularly Russian and  Swiss, have  been active buyers  of both  as they have been  notable out performers through the global financial crisis, with analysts and fund managers  reflecting as well on their sound banking systems .

(Asian , M/E and European Central banks have been steadily reducing their holdings of USD and JPY in preference for the AUD and CAD)

The IMF is planning to list both currencies as reserve currencies alongside  the USD, YEN , GBP, Euro and CHF

AUD’s currently around 1.0482 with the EUR/AUD at 1.2470