AUD/USD = EUR/AUD - What in the...?

I discovered something interesting...

1. Look at the daily 10 year charts of AUD/USD and EUR/AUD

Compare them... you won't really see much of a correlation (especially at the beginning)

2. Then look at the daily 6 month (last 6 months) charts of AUD/USD and EUR/AUD

ALMOST EXACTLY THE SAME!!!! (i.e. mirror images of each other) Even small weekly movements are correlated!

So, what is going on? Both USD and EUR have similar interest rates, so i'm guessing that carry trades are involved?
Anybody who is more experienced disagree?

Thank you!

rudenstein

AUD/USD has the jump, local instos and traders into it during the day AEST time, in anticipation of Euro markets opening a bit later. . EUR/USD flat/for pip traders. My opinion, anyway.

Interesting question you pose tho, look at the hourly : )