The dollar made its move in Europe this morning and the US session was quite muted by comparison. EUR/USD dipped to 1.4770 during the US morning as a large EUR/GBP sell order worked its way through the market but it traded no lower and spent most of the US session just below the 1.48 level. A 1.4815 high was posted early on in US trade, just below Europe’s 1.4821 high.

1.4865 remains the near-term technical target for the bulls, the high posted a year ago today in the wake of the Lehman and AIG collapses.

Profit-taking in EUR/GBP helped boost cable at mid-morning in New York. Prices came close to 1.6400 resistance but the rally stalled leaving stops just above 1.6400 intact. EUR/GBP slipped from 0.9080 with the market noting a call by Goldman Sachs for EUR/GBP to pullback to the 0.8400 level.

AUD/USD consolidated gains after the Kiwi-led rally overnight. It is hard to imagine an economy half the size of Denmark’s roiling financial markets, but Kiwi certainly caught fire overnight and helped fuel the reflation fires. AUD dipped to 0.8720 briefly but spent most of the session between 0.8730 and 50. Recent highs at 0.8775 loom as strong resistance just overhead.