(Action Economics) - 30-Mar-12 05:20 - AUD-USD experienced a good short covering rally after it held the 1.0300 level yesterday.

Heavy option backed bids put a floor in place ahead of large barriers and it started the Asian session close to 1.0375.

JPY buying interest encouraged intra-day accounts to target weak longs, but it did not trade lower than 1.0362 as AUD-JPY demand encouraged a decent bid in the dollar headline.

Other supportive factors included vague rumours of a PBoC reserve ratio cut and speculation that the weekend manufacturing PMI would beat expectations, though the moves looked flow related rather than speculative.

NZD-USD was supported on dips throughout after it recovered from 0.8112 lows yesterday and briefly traded over 0.8202 in tandem with the AUD upswing.

NZD-JPY also experienced good demand on dips and traded from 66.86 lows to 68.25 after it pulled back from 67.45 during the Tokyo morning.

Copyright Action Economics