Spot AUD/USD touched new lows for the day at 0.7446, despite gold opening firmer and trading to a high of $578.80 for the Dec contract on the COMEX. There were large 0.7400 and 0.7500 option strike expiries at the NY cut, however it was the lower strike that gravitated spot toward it after last night"s topside failure at 0.7480.
A breakdown in the technical picture has been attributed with AUD/USD"s weak performance with spot retreating from the much watched 200 day M/A (0.7475) momentum funds, and leveraged accounts remain negative on the currency. AUD/JPY was sold quite heavily ahead of the NY fixing, dropping from an opening high around 87.87 to 87.60 at the fix, however AUD has staged a comeback rally and just traded at 87.75.
Early decent sized selling of AUD/NZD also dampened Aussie"s allure, as the Uridashi charged Kiwi continues to attract carry trades. AUD/NZD dropped to a low of 1.1257 shortly after the open, but Aussie scrapped its way back up to 1.1292, where good sized sellers emerged ahead of the figure and knocked it back down again to 1.1275. AUD/USD is currently trading at 0.7455.
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