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AUD/USD Probing Above 0.7120

AUD

The A$ has been on the front foot for the most part of this session. Positive impetus from regional equities is keeping AUD well supported. This follows positive leads from offshore markets overnight. HK and China related stocks are up strongly in early trade (+2-3%).

  • Earlier weakness related to fresh US-China geopolitical concerns, as US-Taiwan look to build closer economic ties, has faded.
  • US futures are weaker but only modestly and have recovered from worse levels on the day.
  • USD/CNH is down sharply from earlier highs above 6.7800 (latest 6.7530), which is also helping A$ sentiment.
  • Earlier, Australian retail sales printed close to expectations at +0.9%, versus +1.0% expected.

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