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AUD/JPY Falls Below 50-Day MA

AUD

AUD/USD is being dragged higher by yen strength, with the pair pushing above 0.7000, but the A$ is significantly underperforming this yen bounce. AUD/JPY is comfortably below the overnight lows and has also fallen below the 50-day MA at 93.55. The pair last tracked around 93.30, lows back to the middle of July. Further position clearing in yen crosses looks to be a major driver, although weaker China/HK equities aren't helping. Also note, iron ore has fallen by 4% today in terms of the active Singapore contract. We are back to sub $114/tonne. Copper is also down a touch. Market disappointment around China stimulus continues to be felt in terms of China related assets.

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