Forex News Traders

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Australian Dollar Outlook


03:37 GMT February 19 The AUD/USD opened in Sydney around 0.9139 and has
traded a 0.9139/99 range so far. The pair was bid from the open today after
holding up extremely well in the face of a surging US dollar overnight against
the majors. The first topside resistance at 0.9150 was taken out on the back of
a hawkish speech by RBA Deputy Governor Edey and it kept climbing on the back of
local fund interest and buying interest from exporters and US investment banks.
It was sitting around 0.9170 on the release of the minutes from the RBA"s
February minutes and when the news headline of a discussion of a 50bps rate hike
at that meeting hit the screens, the pair shot up to 0.9199 before easing back
just below 0.9190. There was little follow through after the move and the
AUD/USD sat listless for the remainder of the day but poised for another strike
higher once the option barrier at 0.9200 is removed. Most players suggest that
the February minutes all but seal a March rate hike.
Chatter around dealing rooms today was that y"days spike higher was caused
by one large fund throwing in the towel and buying back his short position.