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A$ Edges Higher, AUD/JPY Down For 5th Straight Session, RBA's Lowe Speaks Today


AUD/USD remained somewhat of a laggard to broader USD weakness through Tuesday's session. The A$ edged 0.16% higher, but trailed other G10 FX, particularly NOK and JPY. AUD/USD sits at 0.6685/90 currently, unable to make much headway above the 0.6690 region on Tuesday. Dips towards 0.6650 were supported in NY trade.

  • The currency remains wedged between late June lows (0.6596 from June 29, which is also a bear trigger) and the low 0.6700 region, with firm resistance at 0.6721, the June 27 high.
  • AUD/JPY continues to correct lower, the pair getting to the 93.50 level in NY trade on Tuesday, before finding some support (last 93.80/85). The pair has fallen for 5 straight sessions, with JPY outperforming during this most recent round of USD weakness.
  • A firmer equity backdrop in both US & EU markets didn't lend much support to the cross, while aggregate commodity indices were mixed. The headline Bloomberg index rose 0.92%, in part due to higher oil prices, but the base metals index was down slightly. Iron ore is holding above $106/ton though, with China property support aiding sentiment on Tuesday.
  • Today the local data calendar is quiet, but RBA Governor Lowe speaks a bit after 1pm AEST (04:00 BST). The title of the speech is 'The Reserve Bank Review and Monetary Policy'. See this link to view the speech.

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