Just over a day ago we were below 0.7000 as risk aversion rose on the Swine flu outbreak. Now, with the outbreak nearing pandemic proportions, the market is treating it as old news. Risk assumption is back in vogue after US GDP showed a rise in US consumer spending and a big draw down in inventories. AUD/USD has rebounded to within a an inch of the 0.7300 level where barrier options (part of 0.6950/0.7300 DNTs) are struck. A break targets 0.7315.
One tech bright spot was today’s break of the 200-day moving average at 72.06, a close above which looks assured.
