The demand for the AUD in the last week or so is coming clearly from asset managers, both private and public. The increasing toxicity of European bonds has made Australia very attractive and the spot demand has been very significant indeed. Dealers say that buying interest has been noted, but much less frenzied than yesterday.
Technical resistance levels are at the overnight higth of 1.0430 and the bearish trendline near 1.0450. Support levels start at 1.0350.
