Covering of short EUR/AUD, GBP/CAD and the like are helping limit gains in the commodity currencies, frustrating those who are outright long AUD/USD and short USD/CAD.
Like virtually everything else, those crosses ripped higher at 6:05 am NY time as Draghi uttered that the ECB will “do whatever is necessary to preserve the euro. And believe me, it will be enough”.
EUR/AUD bears are nervously eying stops above 1.1850, a level traded on Tuesday. The short-term charts look quiet bullish.
