AUD pulling back below 0.9000, EUR/USD below 1.3600, GBP/USD back into the mid-1.5050s…none of this was supposed to happen after yesterday’s topside breakouts in all three pairs.
AUD was the canary in the coal mine, slipping back below 0.9070 even before the US closed last night. The fact that EUR/USD was unable to rally despite a strong order book for the Greek 10-year issue was a second major red flag. Throw some crappy US housing data into the mix which upped risk aversion and you have a very disappointed set of currency bulls. Look for sellers on rallies for the balance of today in all three pairs.
