The pound Australian dollar exchange rate is 0.35% higher on the day with GBP AUD at 1.5732. The euro Australian dollar exchange rate is 0.32% higher with EUR AUD at 1.3697. The Australian dollar to US dollar exchange rate is 0.62% lower with AUD USD at 0.9932. Market sentiment has soured with stocks heading lower in mid morning trade in London. This reverses strong Asian trade that has however proved to be a catch up session. Indeed, recent gains for the Australian dollar had resulted in the formation of bullish momentum indicators that now risk being proven as false signals. Spread betting firm Delta Index had called the AUD USD cash contract higher on the formation of a bullish MACD crossover. A buy has been called at 0.9987, a stop loss at 0.9987 and a take profit target at 1.09.3. Yesterday, "the AUD continued its rally off the recent one-year low of 0.9388 reached last week to once again trade above parity. Overnight, US stocks ended sharply higher in reaction to the weekend discussions between France and Germany and their pledge that they would shortly have a plan to recapitalise the European financial system, preventing further damaging fallout from the European debt crisis," says Cameron Peacock at IG Markets. This resulted in more than a 3% plus gain across all the major indices and a rush on risk assets, both physical commodities and currencies.

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