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AUD Bounce Undermined by Mixed Equities

FOREX

Currency markets are non-directional and lacking conviction early Friday with price swings shallow and volumes pretty muted so far. AUD and NZD modestly outperform in a partial reversal of the week's earlier weakness. AUD/USD remains below the $0.71 mark, however, with the lack of support from global equities this morning undermining any bounce.

GBP initially outperformed, boosting GBP/USD to touch 1.2805 before fading on little news to trade flat ahead of NY hours. Data and newsflow has been few and far between so far Friday, which has kept US equity futures well inside yesterday's range and indicating a mildly positive open to close off the week.

Reflecting muted spot markets, implied vols are suitably lower, led by AUD/USD front-end rates, which have shed around 0.5 points.

Friday is a lighter data day, with just prelim US durable goods orders on the docket. Speakers include Fed's Williams and George.

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