EUR/AUD climbed within a whisker of 1.2000 and is trading at the highest since mid-July.
This pair was heavily shorted on the way down as traders piled into the carry trade. So far the rebound has been slow and steady but the threat of a squeeze looms above 1.20/21.
After the weak China PMI and less-dovish comments from Bullard, AUD/USD has swept away much of the post-FOMC minutes rally. Good bidders seen at 1.0460/50 with stops below. More demand at 1.0420. A 1.0450 option also goes off at the top of the hour.
