Yesterday’s savage equities sell-off saw the AUD settle the session in the mid 1.0520 range, down approximately 70 pips from where it started the day.
With the negativity surrounding Greece continuing into the European session, the AUD extended its slide, falling to an overnight low of 1.0478 before experiencing a modest bounce on the back of some better-than-expected US economic data. At its US-session peak, the AUD hit 1.0568 before closing around 1.0560. Upon re-opening for Asian trade, the AUD tracked the ASX 200 over the course of the morning.
As the Australian market surged back above 4500 to a session high of 4524, the AUD moved into the 1.0570 range before pulling back to the current level of 1.0545. Positive developments in Greece over the weekend and further stability in US equity markets hold the key to the short prospects of the AUD.