The euro is finding a toe hole on speculation that the new Greece government may soften its stance and work with international creditors.
The mix of the Fed commentary yesterday with dovish RBA comments are sending the Aussie Dollar to fresh multi-year lows and a view of the 10yr support. The ultimate commodity currency must address the realities of weaker policy and embrace what the market is doing for it.
I wanted to give a quick Friday morning update on the currency/commodities markets as we head into the weekend.
The U.S. dollar is in a holding pattern ahead of the Fed. In fact you can see the Fed effect in Aussie dollar/U.S. dollar pair (AUD/USD) for the past 5 sessions.
Aussie Dollar – since early May we have been riding this short with a target of .85. After a wicked break today (-2%), we are in sight.
Fresh lows for the Aussie. With the rally in commodities and the Yen off today you would think Aussie would be finding a bid…try -1.75% weaker.