Spanish Bank Worries Driving USD Strength

Concerns about Spain's ability to shore up fiscal gaps and overhaul its banking system are rattling the AUD/USD, says Peter Dragicevich, a foreign exchange economist at Commonwealth Bank. He adds only a weak U.S. nonfarm payrolls number this Friday, fueling expectations of further stimulus measures from the Fed, would curb current broad-based USD strength; "we've seen Sterling come off and the Euro as well, it's really USD strength across the board." AUD/USD support is pegged at 0.9670, with resistance at parity. The pair is last at 0.9810.