AUD/USD collapses to lows since August 2008 but bounces hard above

FXstreet.com (San Francisco) - The AUD/USD reacted to the downside following the Fed's decision to taper bond buying by $10 Billion in January.

The AUD/USD collapsed around 100 pips to trade at 0.8815, lowest since August 2008 but it bounced hard to recover all loses and trade as high as 0.8925. Currently, the AUD/USD is pricing at 0.8915, 0.10% positive on the day.

Market will pay attention to Ben Bernanke press conference at 19:30 GMT, 14:30 ET.