Forex: AUD/USD recovers from lows below 1.0600

FXstreet.com (San Francisco) - AUD/USD is recovering from a recent 3-week low of 1.0595, a level reached on the back of Aussie weakness fueled by the political feud between Aussie PM Gillard and former Foreign Minister Kevin Rudd.

The pairing traded under pressure for much of the Asian session, but encountered buying interest at the mentioned low, enabling it to print a fresh session high in the 1.0650 price zone.

"The introduction of political uncertainty triggered only a brief bout of seesaw volatility, with AUDUSD spiking lower only to quickly recover and resume its already-established gradual [ascent]," observes Eric Andersen, analyst at DailyFX

At time of writing, AUD/USD is quoted in the 1.0640 area, in virtually the same place its opened the Asia-Pacific session. "In the event that Rudd or Gillard quit politics, the Labor Party would lose its single-seat majority in the Australian Parliament, providing the Opposition with an opportunity to call early elections or form a new government, given it had the support of independents," says Mr. Andersen.