Seems the EUR/AUD slip from o/n highs around 1.2815 is propping up the AUD/USD in Europe this morning. Sean mentioned seeing some demand as well under 1.0300 from real money types which is keeping the pair steady above 1.0280. Offers are sitting up at 1.0310/20 with buy stops on abreak of 1.0320.
There are more bids from 1.0250 down to 1.0240 from a variety of names including sovereigns, funds and possible semi-official names, but sell stops are primed for a break of 1.0240.
Also worth watching is GBP/AUD which was sold off from 1.5500 in the Far East to recent lows of 1.5408. With the BOE announcement at 1100GMT on the horizon which is likely to be unchanged and QE remaining at £325 bln, and the talk of a RBA cut next month , this pairing could well be a good buy opportunity in an otherwise rather directionless market.
Real money and Middle Eastern names have apparently been buying the GBP/AUD cross off the dip this morning
AUD’s at 1.0294, GBP/AUD at 1.5437 and EUR/AUD at 1.2765