AUD/USD pares losses
The Australian dollar is at the best levels since Asian trading as it creeps to 0.7207 from as low as 0.7165. The driver at the moment is general US dollar weakness.
It remains about 5 pips lower on the day but even if it can't pull into positive territory for the seventh consecutive day, the ability to bounce back is impressive. It would be easy for longs to clear out after an extended gain but they're staying put.
I noted at the start of the month that October is a great month, seasonally, for the Australian dollar. If you ignore 2008 because of the crisis, it's averaged around a 2% gain in October over the past 15 years.
The next line of resistance is the September fork top at 0.7280.
