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Corrective Pullback


Light Upside Call Spds


Dips Considered Corrective


Trend Signals Remain Bearish

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Some fresh positivity (with caveats) regarding China's embattled developer Evergrande provided a tailwind to AUD/USD Wednesday, while U.S. FOMC monetary policy decision/Fed Chair Powell's presser inspired a whip-saw reaction in all USD crosses. AUD/USD topped out just shy of the $0.7300 figure but trimmed gains thereafter and finished slightly above neutral levels.

  • The rate last sits at $0.7242, 5 pips lower on the day. Further losses past Sep 20 low of $0.7220 would please bears, clearing the way to the 76.4% retracement of the Aug 20 - Sep 3 rally at $0.7194. Bulls look to a jump above the 20-EMA at $0.7303, followed by Sep 10 high of $0.7410.
  • The trio of flash Markit PMIs headlines the Australian docket today, but they do not typically move the market. Covid-19/AUCUS headlines will probably continue to trickle through but there is little scope for these to have much impact either.