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AUD benefitted from a modest round of risk...>

AUSSIE
AUSSIE: AUD benefitted from a modest round of risk on flows, with sources noting
interest from a north-Asian name. The cross deals at 0.7580.
- It is a busy week for the domestic docket. Traders focus on the final domestic
GDP constituents, due today & tomorrow, ahead of Wednesday's GDP release.
Consensus looks for a headline Q/Q GDP print of 0.8%, against Q4's 0.4%.
- Elsewhere the RBA will issue its latest MonPol decision on Tuesday with all of
those surveyed looking for the Bank to leave its cash rate unch. at 1.5%. As a
result participants will scour the statement for any changes in rhetoric. Rates
markets are pricing in a mere 45% chance of a 25bp hike over the next 12 months.
- Elsewhere retail sales will hit later today and April's trade balance will hit
on Thursday.
- Bears failed to capitalise on a close below the 21-DMA last week and now
challenge initial resistance at the May 25 high at 0.7593. Above here the most
notable areas of interest come in at the 55-DMA at 0.7615 and the falling daily
trend line off of the YtD high at 0.7633. Support comes in at the 21-DMA,
0.7533.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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