EUR/AUD climbs to fresh 4-year highs above 1.5600

FXstreet.com (Córdoba) - The EUR/AUD rose sharply and reached the strongest level since since February 2010 at 1.5666. Upbeat data from the Eurozone and a weak Aussie across the board pushed the pair sharply to the upside.

EUR/AUD breaks 1.5600

During December the Euro rose two times toward 1.5600 but failed to break higher and made corrective moves afterwards. Yesterday started trading around 1.5300 holding some downside momentum that followed Australian inflation data but after the Chinese PMI report gained momentum and rose back above 1.5400.

On European and American hours the pair rallied further as the Aussie tumbled across the board, and made a clear break of 1.5600, peaking at 1.5666. It closed at 1.5620, with a gain of more than 300 pips, the biggest since May 2010.

Flash: Watch EUR vs SP500 correlation - BBH

The breakdown of the relationship between the euro and the S&P 500 should raise a yellow flag for Europeans investing in the US, notes Marc Chandler, Head of FX at BBH.
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USD/JPY suffering on continued risk aversion

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