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AUSSIE: A broad based risk-off reaction to an SCMP piece re: no progress in
U.S.-China deputy level trade talks has applied some weight to AUD/USD. The pair
last sits at $0.6713, 12 pips worse off.
- To recap, the rate mostly advanced through yesterday's Asia-Pac session, with
a stronger than expected PBoC fix providing support. That said, an early
downtick was seen after Australia's Westpac consumer confidence index hit a
four-year low. Headlines mentioning China's readiness to strike a partial trade
accord with the U.S. allowed AUD/USD to extend gains in London hours, but this
was negated by a subsequent recovery in the greenback's strength.
- From a technical perspective, an earlier break below $0.6724/23, the 23.6%
retracement of the Sep 12 - Oct 2 slide/Oct 8 & 9 lows, brings into view the low
of Oct 3 at $0.6702. Below there would expose the Oct 2 YtD trough at $0.6671.
Bulls need to recoup the $0.6723/24 area before setting their sights on $0.6757,
where the high of Oct 8 coincides with the 38.2% retracement of the
aforementioned Sep-Oct decline.
- On the radar today are Aussie housing finance data and consumer inflation exp.
MNI London Bureau | +44 203-865-3806 |
MNI London Bureau | +44 203-865-3806 |