Free Trial

A$ Outperforms Supported By China News, Q2 CPI Coming Up

AUD

Aussie outperformed the G10 buoyed by China’s July Politburo statement that increases support for the property market and includes plans to resolve local government debt issues. The measures are seen as positive for commodities. AUDUSD broke resistance at 0.6788 and is currently trading around 0.6789, off the intraday high of 0.6795. The USD index fell 0.1%.

  • AUDUSD has found some support but remains in a bearish cycle. Initial support is at 0.6719, the 50-day EMA. Initial resistance is 0.6847, July 20 high, with the bull trigger at 0.6900.
  • Aussie rose strongly against the euro on more disappointing German survey data. AUDEUR is up 0.9% to 0.6143, the highest since July 13. AUDNZD is 0.5% higher at 1.0916. AUDJPY rose 0.4% to 95.70 and AUDGBP +0.2% to 0.5265.
  • Equity markets were generally stronger with the S&P up 0.3% and the Eurostoxx +0.2%, but the CAC down 0.2%. Oil prices rose further with WTI up 0.8% to $79.36/bbl. Copper is 1.7% higher and iron ore is around $114.70/t.
  • Today Q2 CPI prints which will be an important input into the August RBA meeting, especially the services component (see MNI Q2 Inflation Forecast To Moderate To Around RBA Forecast and Services Focus Of Q2 CPI, Annual Rate Unlikely To Ease).

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.