Top Market Movers

AUDUSD

Soaring Inflation Underpins Aussie

The Aussie dollar opened up higher in New York with option barriers a target in the early morning hours of trading. Attempts at the 0.7500 handle were subsequently made in light of stronger U.S. economic data for the month. Additionally bolstering the Aussie in the overnight was better than expected inflationary suggestions.

In the first quarter, consumer prices soared 0.9 percent on higher health and education costs. With fuel and other commodity prices pressing higher, expectations are rising for a continued uptrend in prices at the individual level. As a result, today's report contributed to massive speculation that interest rates in the Pacific economy may rise as early as next week's decision.

The notion may be highly improbable as producer price inflation remains muted even as a tight labor market contributes to higher wage costs. Subsequently, the current growth doesn't look to justify such a decision. Nonetheless, demand pushed the underlying spot in testing the historic topside trend line in the early morning with steady gold prices and cross buying in AUDJPY propping up the major.

Rumorville

After today's bidding, option defenses continue to dominate heading into the Asian session. Continued offers are residing at the 0.7550 and 0.7575 figures with heavier interest at the 0.7600 handle. Any bidding on the session looks to take place at the 0.7500 figure.

NZDUSD

Traders Diss Dollar, Bid Kiwi

Underlying inflationary pressures continued to make the Kiwi a bid candidate on the day. Plenty of NZDJPY bidding on was seen propping up the major as traders disregarded the rather optimistic U.S. based economic data. For the month, durable goods orders climbed better than expected, soaring 6.1 percent above expectations of a 1.8 percent jump.

In addition, the world's largest economy saw better housing data which looks to be reflective of rising consumer confidence. However, with capital flows strongly in favor of the Kiwi dollar, demand outweighed dollar good vibes. Subsequently, traders will be looking ahead to the upcoming decision by Governor Alan Bollard and the Reserve Bank of New Zealand's benchmark rate decision. Expected to keep rates at 7.25 percent, speculation is leaning towards an upcoming rate hike consideration as economic figures have been picking up recently.

Rumorville

Offers are looking to take the day's action at 0.6350 and 0.6360 with stops incrementally above at 0.6360 and 0.6370.

AUDJPY

Aussie Buying Fuels Crosses

The AUDJPY currency cross bucked the major's decline and moved higher on the day, vying with the AUDUSD major for the biggest mover on the day. However, further gains may be capped as plenty of economic data is set for the end of the week, and may result in plenty of favoritism for the Japanese yen.

Should prices climb once again and policy makers suggest a more hawkish bias in agreement with the headline government, yen bidding looks to reverse the pair, countering Aussie demand. Subsequently, option defense near the spot at 114.60 and 114.40 looks to keep the bid momentum on the yen minimized with heavier interest at the 114 handle.