Sharp and nasty EUR short-covering yesterday during the European session and it looks like the sales guy (as usual) has the pulse of the market; now its a question of how far this rally can take us. AUD/USD is consolidating above 1.0500 and undoubtedly frustrating the bears again, with tomorrow’s CPI the next major risk event.
Much of the region will again be closed for Chinese New Year celebrations and I’m expecting a quiet Asian session although there is a danger that reserve managers start chasing the AUD/USD higher.
Good luck today.
