Russia: “No Plans To Annex Any Part of Georgia”
AUD-USD traded on a supportive footing after recovering from overnight weakness. Bargain hunting in AUD-NZD and option related demand in AUD-USD put a floor in place, which saw the dollar pairing rally from 0.8625 up to the 0.8675 area. Howver, the topside is expected to remain capped around the 0.8700 pivot, with the RBA minutes confirming that the next likely move in rates is a cut. Pressure on commodity prices is also a negative influence, although spot gold has stabilised after the heavy unwinding by Japanese retail accounts in Asia. AUD-USD may see some choppy price action in the New York morning session, with a good size 0.8675 option strike due for expiry at today’s N.Y. cut.