The AUD/USD pair had a slightly positive session on Monday, but just barely so. The 1.0450 level is the top of the cluster that sits just above 1.04 previously, and because of this there should be a significant amount resistance in this general vicinity. However, a lot of what would’ve The Australian dollar from appreciating during the session actually had to do with the bailouts in Cyprus. As that bailout wipes out a lot of the bondholders or at least comes close to doing so, this rattled the markets and got them into a “risk off” type of mood. Any time there is risk off, the Australian dollar struggles. We do believe that the 1.04 level should offer support though on pullbacks.
Written by FX Empire