Confident talk o/n from China’s Wen that it will maintain economic growth, and talk that Spain’s Rajoy may ask ECB for help through the ‘OMT’ have helped underpin the AUD and caught out more shorts as the pair posts a fresh month’s high of 1.0490.
Option related offers sit ahead of a 1.0500 barrier, with buy stops aligned on a break of the level. There is technical resistance above in the 1.0525/45 region (1.0529 high of Aug 23, 1.0545 high of Aug 22) with further buy stops through 1.0550.
EUR/AUD’s helping the cause with the pair slumping to fresh week lows around 1.2278 and looks set to have a peek at Friday’s 1.2233 lows again
Model accounts and Japanese names have been the main buyers of AUD over the last 24 hours, but real money and corporates are still fading into the rally
AUD’s presently around 1.0475, with EUR/AUD down around 1.2285 after highs of 1.2327 in Asia