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At typing AUD/USD trades at $0.6980, 25......>

AUSSIE
AUSSIE: At typing AUD/USD trades at $0.6980, 25 pips worse off on the day.
- Local PMI survey from CBA revealed that expansion decelerated in both m'fing &
services sectors, with pessimistic signals noted re: the Australian labour
market, which remains the focal point for the RBA.
- Soon thereafter, APRA required Macquarie, Rabobank & HSBC to tighten the
intra-group funding arrangements, after they improperly reported funding
stability within the group.
- A fresh bout of AUD/USD sell-off emerged as Westpac both front-loaded and
boosted its RBA call and now expects two more 25bps rate cuts in Oct & Feb vs.
their prev. call for one 25bps cut in Nov.
- Downbeat skilled vacancies further fuelled concerns re: Australian labour mkt.
- Bears keep an eye on the 50-DMA, which kicks in at $0.6957, ahead of the 61.8%
fibo retracement of the YtD range at $0.6953. Bulls would be pleased by a return
above the $0.6996-94 zone, which hosts a congestion of recent highs & lows and
provided some support early on. Above returns focus to the $0.7000 mark.
- RBA Gov Lowe speak on "Inflation Targeting and Economic Welfare" tomorrow.

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