Traders say China is on the bid in EUR/USD in the low 1.47s, taking the downside out of play for the near-term. He likely sold the rally above 1.4800 yesterday, protecting 1.4850 barriers. Same story in AUD where he sells ahead of 0.91 only to buy them back on dips to 0.9025.
Reserve diversification from banks like Russia and South Korea who have been intervening to weak their local currencies is expected on any weakness as well…
Looks like we’re likely to trade broadly within 1.47/1.48 for the balance of the session.
