AUD/USD touches session high
The last leg of the US dollar surge today has been wiped out. It was triggered by hawkish comments from Powell but it's slowly unwound. USD/JPY is back down to 123.70 from 124.17.
The more dramatic moves are in the commodity currencies. AUD/USD is at a session high at 0.7749 from as low as 0.7679 a few hours ago. The 70 pips reversal has been keyed by gains in commodities, including a 2% rally in copper and a similar climb in iron ore. Oil is also up 1%, boosting the loonie.
So far, offers at 0.7750 are capping AUD/USD gains but the outlook is beginning to improve.
The 100-day moving average is at 0.7776 and is the next level to watch.