EUR/USD has recovered sharply after the quick dip to 1.3573. AUD/USD on the hand remains heavy and is struggling to bounce despite European stocks and Dow futures being off their lows. Even Gold is up $9 from its lows.
AUD/USD of course is now playing catch-up to the moves witnessed this week in EUR/USD. EUR/AUD is up 1.5% from its lows today whilst AUD/JPY is down over 2.0%. All up the moves today based on S. Korea capital controls (a stretch) and China rate hike (yes they are in a tightening phase and everyone knows this) are all about position adjustment. Euro has had its pain this week – now its time for the AUD to play catch up.
