Looks like some Aussie corporates have been caught with their rugby shorts down…They’re scrambling for cover in AUD/USD, apparently under-hedged against strength in the local unit. Sellers are seen in the 0.8915/20 window, traders report.
Breaking above the 100-day moving average at 0.8866 and the 61.8% retracement of the decline from 0.9390 has given the technicals a big shot in the arm. Brighter-than-expected European growth prospects are helping the commodity currencies as fears of a global double-dip recede.
The 200-day moving average at 0.8965 is important resistance above the market.
