A barrier option at the 0.8900 level has succumb as a continued rise in gold and a jump in equity prices plus an earlier-than-expected hike by the RBA has given the AUD its day in the sun.
The market has done a lot of heavy lifting to get through 0.8900 so a period of consolidation is likely needed before a fresh run to the topside can unfold. 0.8865 is support on pullbacks.
Just crossing the wires are reports from Iran’s finance minister that there have been no talks in recent days on shifting away from the dollar, shooting down Robert Fiske’s story in the Independent. Coming from Iran, no friend of the US, you can take that as confirmation that the story was fiction, though it is plausible on many levels.
Iran has shifted away from dollars as sanctions have effectively shut it out of the US banking system. That has worked out to Iran’s advantage to the tune of billions of dollars, the FinMin says…talk about your law of unintended consequences…
