AUD/USD stops lowered to 0.9770

Traders expected stops to be heavier below the 0.9800 level earlier today but talk is that many stops were pulled and lowered to the 0.9770 area.

Risk aversion is working against commodity currencies but tighter Asian monetary policy should keep local currencies buoyed, which ultimately supports AUD as Asian CB’s diversify reserves.

In this environment, look for AUD to hold up better than EUR if risk aversion accelerates…