AUD,NZD

US 10-year yields close in NY near lows after volatile session

Much of USD moves in recent times have been driven by sentiment in the fixed income markets and US 10-year yields closed near session lows at 1.92% after the comments from Bullard and Dudley. USD/CAD bulls backed off their attempts to take out the weekly trend-line and the market in general seems to be accepting that Mr Bernanke will make little or no mention of any ‘tapering’ in the Fed’s QE programs.

The short-term speculative market seems to be long of USD, especially against currencies like the AUD, so I prefer to buy any deep intraday dips in AUD/USD in expectation of a short-covering rally towards .9900 sometime over the next 24 hours.

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