AUD Trading Outlook (04-01-2013)

The Japanese Yen (JPY) gains against the USD/JPY where limited however with recent buying already putting the major in overbought territory. After the FOMC minutes yesterday we saw the 10 Year Yields on US debt tick higher as investors believed we moved closer to normalization of interest rates. The USD/JPY immediately tracked this change in Yield and is a key factor for movement these days. Australian Dollar (AUD) the AUD/USD was mixed with a brief rally above 1.0500 before the FOMC sent the commodity currency back to 1.0450. The Aussie is getting support however from Iron Ore which has gain 70% since the China slowdown scare low.