AUD/USD Slides After Topping 1.10 Level - Westpac

After surging up above the 1.10 level in early Asian deals on Monday, the Australian dollar has pulled back against the U.S. dollar on the back of a slide in silver prices and amid a rise in greenback on news of Bin Laden's death.

The Australian dollar that opened higher at 1.0960 against the greenback soon climbed to 1.0995 on expectations of a hawkish statement from the Reserve Bank of Australia tomorrow. But the Aussie pared its gains and fell to 1.0930 as silver posted a distractingly large 10 percent slide at a time of day (pre-Tokyo) when it barely moves, the firm noted.

However, AUD/USD again went up to a high of 1.1011 as markets were not quite sure of how to trade the news of Al-Queda leader Osama Bin Laden's death. But the U.S. dollar strengthened amid the death news of Bin Laden and this pushed the Aussie trade below 1.0930 ahead of the European session.

Elsewhere, EUR/USD was trading in a range between 1.4762 and 1.4864, sitting at 1.4795 in late Sydney trading and is little changed from the weekend.

Similarly, NZD/USD traded in a 0.8032 - 0.8109 range, with price action violent around the silver sell-off time and that has raised concerns about the broad short USD/ long, Westpac analysts said.

Meanwhile, USD/JPY recovered from 81.00 to 81.55 and the risk barometer EUR/CHF bounced from 1.2817 to 1.2850 on the Bin Laden news. Analysts, however, noted that the level of EUR/CHF is still well below the levels prevailing before the hawkish comments from the Swiss National Bank on Friday.

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