The Aussie and New Zealand Dollar rallied overnight, supported by a boost in risk appetite and gains of major Asian stock indices. AUD/USD stood around 0.7205 at the Sydney open and reached a high of 0.7255 earlier. NZD/USD started around 0.6780 and traded as high as 0.6846 in Asia. The pair had a very decent bounce off the 0.67 support level and the strong momentum suggests it will test 0.69 again soon. Above that level, there is no significant tech resistance until 0.70.
Price action in the other major pairs was calm. USD/JPY rallied to 120.98 in Tokyo, but failed to sustain momentum and fell back to 120.62. Key resistance is now seen at 121.25, while intraday support lies at 120.35 and 119.65. EUR/USD, which was the worst performing currency yesterday, consolidated in a 1.1070-1.1120 range, but is currently almost unchanged from the NY closing level. Next support is seen at 1.1008 (mid-August low). Meanwhile, GBP/USD bounced off 1.5375 support again and reached a high of 1.5410.
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