There has reportedly been a sizeable buyer in the market over the last 3 days with one big UK bank being the most likely suspect. The AUD has made very strong gains against the EUR and the GBP and speculation is that an M&A deal is going through (sorry I’ve no idea which).
Two of the local banks have issued sell recommendations on the AUD/USD between 1.0150/1.0200 and this is based on the heavy selling interest which is still being reported between 1.0200/1.0250
EUR/AUD broke below 1.3900 briefly last night and many of those who jumped on board the AUD bear wagon, after the big risk aversion plays surrounding Japan, will now be getting nervous. It could possibly fall towards 1.3700 from here but I personally doubt if it will fall any further than that.
