Rising commodity prices are seen supportive for AUD with aluminum rising limit up in Shanghai trading and the CRB index at the highs last seen July 1st. Fresh positive forecasts for commodity prices are adding to the positive tone for dollar bloc currencies, with Australian coal mines ramping up production due to increased demand from China. Rising Asian stock markets are fueling risk appetite with the Nikkei up 2% so far this session. A key retailer in Australia stated on the weekend that he sees the worst of the Australian economic crisis now over. IMM data release on Friday shows that net AUD longs are the highest levels since July 2008 as risk appetite increases and the AUD yield spread over U.S. three-year bonds has risen to the highest level in a year, adding to support factors for AUD. The AUD-USD has rallied strongly from morning lows of 0.8146 to highs of 0.8209, absorbing very good selling from a UK name ahead of 0.8200 in the move up. 0.8220/25 remains resistance and there were rumors of RBA intervention last week after data in May and June that showed reserve management flows to cap the AUD gains around current levels. Still, the combination of strong commodities, improved yield spreads and ongoing central bank reserve diversification away from the dollar remains a potent support for the AUD.