Morning Fundamentals: AUD/USD Continued Wild QE Ride After FED Comments

EUR/USD looks to have shaken off the bearish tone from earlier in the week, thanks to comments from Bernanke late on Wednesday that the unemployment rate didn’t lend itself to a reduction in QE in the near future. The euro sored on the comments, and similar to other majors against the USD the price shot up like a rocket during early trade on Thursday morning to just breach 1.3200. Once the price started to reverse, new bears and range traders sold the pair back to 1.3070. The price has since tried to rally again in Asia with 1.3145 capping, before early European traders drove the price back to 1.3007. A late jump in the U.S. session saw the pair back towards 1.3100 as the roller coaster continued. Low level European data doesn’t lend itself to a wild close to the week, but its just got that feel about it. PPI and Consumer Sentiment in the States should provide some action, but for now we are keeping positions small and just outside the range.

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The AUD/USD continued the wild QE ride in the wake of the comments from Bernanke that the employment rate won’t lend itself to any reduction of the QE program in the near future. I mentioned this since this tapering was first signalled. The AUD opened Thursday morning's trade having just touched the 0.9297 top with the early Asia bears jumping all over the spike and quickly taking the price back to 0.9200. That wasn’t to be it for the ride, as the Australian Unemployment numbers surprised for the third month in a row with an up to 10.3K despite the actual rate increasing as more people registered for employment seeking. The AUD broke 0.9300 for a moment before collapsing over the Asian afternoon and European morning trade sesssions as the tones of the QE talk settled with AUD, back through 0.9200 to crash to 0.9125 before settling near 0.9177. Australian Home Loans are expected to rise by 2.3%, but with this choppy action new positions might be better left to next week.

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