The Australian dollar continued to grind higher in Asian trade on Wednesday, climbing above the 77 cent level against the US dollar for the first time since May 3, – the day the RBA cut rates from 2% to 1.75%.
The AUD/USD is currently oscillating around the 77 cent level, having traded as high as .7707 earlier in the session.
It’s a case of the US dollar being weak, rather than the Aussie being strong.
As soon as Japanese markets walked in the US dollar was whacked, sending the USD/JPY tumbling down to 101.14, a loss of close to 0.9% for the session. It currently buys 101.35.
The move in USD/JPY reverberated across the region, seeing the broader US dollar index lose more than 0.5%.
There was no definitive reason to explain the move, other than boredom and thin market conditions.
European markets are about to enter the fray. It’ll be interesting to see whether they continue the Asian move or choose to fade it.