USD/AXY: Up to $6 billion bought during intervention this week

The scale of intervention is having some small success, with today’s late move higher in the USD being mainly caused by the buying back of USD/AXY shorts before tonight’s risk events and the weekend. This also indirectly led to EUR/USD stops being triggered below 1.2920.

Asian central banks have still got significant interest in the majors as they seek to recycle these freshly bought USD and dealers are speculating now that the ACBs have bids in the EUR/USD near 1.2865/70 and in the AUD/USD near 1.0330. If you hear reports that they are in the market, then the amounts are probably decent.

Have a great weekend and catch you next week++