The first move is the wrong move? Could be, for New Yorkers who walked in the door and hit bids in EUR/USD. Central banks are once again buying weakness (not that they have prevented the market from weakening for most of the last week). Sparking a mild short-covering rally. Offers are being chipped away at between 1.3470 and 80 with larger sellers up at 1.3500. Look for stop-loss buying on a break above the 1.3505 area.
AUD/USD is enjoying a nice rally in early NY trade. Hopes for a lower than expected Chinese CPI are the catalyst. Traders hope that Beijing will be able to slow price rises without slamming on the monetary and fiscal breaks. The data is set to be released tomorrow and was rumored up 4.9% as opposed to market forecasts for up 5.4%.