The strong rally in the JPY has upset the applecart in AUD/JPY and has taken the rug out from under AUD/USD this afternoon.
Aussie, to my mind, is the most over-owned currency on the planet as investors try and project their hopes and dreams for China’s ascendancy on a liquid currency and Oz fits the bill. It has also been used as a EUR alternative as many see trouble ahead for the dollar owing to growing government debt and super-low interest rates but distrust Europe as much or more than the US.
All that may be true, but the market’s bets are bigger than Australia, by a very long way.
Next technical support for AUD lies down at 0.7483, the 10-day moving average. Resistance is at 0.7560.
For AUD/JPY, support comes in at 71.46, the 50% retracement of the 66.81/76.11 rally seen over the last two weeks.
