Aussie came under pressure in early Europe amid reports of good fund selling via AUD-JPY and general short positioning via AUD-USD, with market participants still reluctant to take on aggressive risk. AUD-USD pulled back from 0.7830 in late Asia and traded at 0.7787 lows, while AUD-JPY traded in to 72.00 after pulling back from the 73.00 region in Asia. One source of AUD-JPY selling is today's disappointing take up in the Nikko investment launch, which fueled long liquidation by speculative accounts. Elsewhere, commodities are also being pressure, which should act as another drag on price action ahead of next week's event risk on Thursday. This is when RBA reserve data is released and will indicate how active the Bank has been in Aussie after news that it was selling up to 0.8200 in May. The target for many shorts remains the 0.7500 area. However, on an intra-day basis support lies at 0.7750-55 and offers are staggered up to 0.7875, which protects stops above.
