Intellimoney, u are right on about the volatility tonight. EURO...

Intellimoney, u are right on about the volatility tonight. EURO dropping and uncertain... now..

anywya, news break

[AUD/USD] continues to trade with a relatively firm tone as European trade gets underway, with the RBA's Dec minutes suggesting a pause was likely in the CB's aggressive stance & providing a key prop to trade. A gradual recovery has been panning out this week, with the pair reaching 0.6747 at one point yesterday. We have been turning more bullish for this pair in recent sessions, & mull the resilience of the Australian economy, which managed to post positive growth last month despite the global recession. The willingness of the RBA to act on rates over the Summer could well mean that Australia recovers quickest from the current economic crisis, whilst the yield advantage that the Aud has over the Usd - and potentially even more so after tonight's FOMC, means carry trade demand could well spur strong gains.


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