AUD Trading Outlook (18-10-2010)

The Australian Dollar (AUD) finally broke above the parity mark for the first time in its 28 year, post float history. The Aussie traded above the mark, albeit it briefly, as Bernanke fuelled easing speculation. Yet selling was pronounced as the level remains a psychological barrier. The reluctance for the AUD to break clearly above, might be a point of concern. Added, Treasurer Wayne Swann warned over the weekend that intervention may be a tool to curb the strength in the AUD. Such comments could have been attributed to the AUD beginning the Asian session on a weak footing Monday, trading below Friday&rsquo s lows The AUDUSD traded with a low of 0.9864, a high of 1.0003 before closing the day at 0.9878.