EUR/AUD buying this month is now starting to weigh heavily on AUD/USD. It’s starting to look like a reversal of the month of Oct which basically saw a 1000 pip move down from 1.4100 to 1.3100. We’re already 500 pips up so far this month with a break up through 1.3555/60 likely to accelerate a jump towards 1.3750.
Other factors weighing on the AUD/USD seems to be Gold, as Jaime mentioned last night in NY which is being sold off to fund other market positions.
It’s all looking a tad heavy this morning with a low so far of 0.9964 and a EUR/AUD high of 1.3533.
There’s talk of a 0.9950 barrier though which may see some protection bids in the mid 0.9950’s and sell stops down through 0.9945 before more bids at 0.9930. Offers start from 1.0025
