If that was the low then it was a pathetic little sell-off. There seems to be a definite pattern to late Asia/early Europe moves of late. Europe walks in and is greeted by NEGATIVE Euro news and promptly sells. Asian Central Banks (ACBs) who have been defending their local currency pairs all day say thank you very much and recycle the bought US Dollars into Euro, AUD, etc etc.
One should not underestimate the amount of intervention (US) Dollars bought this week by ACBs. Dealers were suggesting around 6bln on Wednesday alone. So all up this week it might be in the vicinity of USD15bln.
Is it any wonder the Euro and the AUD are so bid with dips fleeting!
