AUD follows Euro lower

The Aussie looked good early in the European session, but was caught up in euro selling during the US session.

After closing around 0.7690 the Aussie looked good to push back above 0.7700 overnight. With momentum on its side and having tested resistance earlier in the day, it was unlikely the Aussie would have any trouble. Unfortunately around the same time traders began to sell off the euro and the Aussie was caught up in the slide. This saw the Aussie drop from its high of 0.7698 to register a low of 0.7640 before a support level was found. This morning the onshore markets are dealing with the aftermath of another greenback rally, with a new support level of 0.7630 forming for the Aussie.

The cross rates held fairly steady overnight as the greenback moved evenly against most currencies. The Aussie did managed to out performance the other majors slightly which has seen the euro, Sterling and Yen crosses all a touch higher.

The market looks to be focusing on tonight’s speech from the Fed’s Alan Greenspan which should provide some idea of if and when the US interest rates may move next. Onshore the Aussie will look to consolidate support at 0.7630 and work towards pushing back towards 0.7700 through the day. With the release of employment figures at 11.30am today there is plenty of opportunity for a move either way. Good figures though should see the Aussie regain much of its losses from last night.