The Australian Dollar made extended gains to the intraday high of 0.7738 against the US dollar in Europe from the low of 0.7660 in the prior Asian session on the chart (+78 pips).
There were offers at 0.7635 amid talk of carry trade related demand for the aussie dollar as Europe came in. The initial gains and buoyancy of the aussie came from the strong sell-off of the Euro Aussie which fell significantly by 150 pips from 1.4010 to 1.3860 on the intraday chart.
Profit-taking soon followed when the NY session went underway as the AUDUSD rate eased back to 0.7690 against the broad firmness of the US dollar. The US Dollar Index is +0.42% to a 1 week high of 98.459 in Europe.
The 14-day moving average met resistance at 0.7730 and support building up at 0.7700. Expect further down correction movement for the aussie and consolidation 0.7725 - 0.7670.
Charts: WorldWideMarkets Alpha Trader