FOREX: AUD Crosses - Bounces Against The GBP, Clear Rejection Above 2.1000

US stocks continue to make new highs and the risk backdrop is positive. The AUD performance in the crosses remains subdued with the only real mover being against the GBP which sold off across the board as Gilts collapsed on UK centric news.

• EUR/AUD - Overnight range 1.7908 - 1.7965, Asia is currently trading around 1.7955. The pair has been trading in a very tight 1.7900 - 1.8000 range the last couple of days, it has had a good run higher but how the AUD/USD trades through 0.6550/0.6600 will be key. First support seen back towards the 1.7800 area, a break above 1.8000 is needed for the move to extend higher.
• GBP/AUD - Overnight range 2.0688 - 2.0908, Asia is trading around 2.0755. Speculation about a possible exit by Rachel Reeves made investors nervous and the GBP got hit across the board. A clear failure to break above 2.1050 with multiple rejections see the pair move towards the lower end of its 2.0500 -2.1050 range. Time will tell if this is now a medium term in place.
• AUD/JPY - Overnight range 94.13 - 94.68, Asia is trading around 94.45. Choppy price action as the pair establishes a range between 92.00 - 96.00. Momentum higher seems to be stalling and considering the risk backdrop you could reasonably have expected this pair to be trading higher, a break sub 0.9350 would be needed to see the focus turn lower once more.
• AUD/NZD -  Overnight range 1.0791 - 1.0821, the cross is dealing in Asia around 1.0805. The cross is struggling to get any momentum for now. It looks to be in a 1.0750 - 1.0850 range for now as it awaits a catalyst to provide some direction.

Fig 1: GBP/AUD spot Hourly Chart

Source: MNI - Market News/Bloomberg Finance L.P