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AUD Joins Equities in Recovering Off Lows

FOREX
  • AUD trades most favourably early Monday, with AUD/USD inching higher to further erase the losses suffered on Friday. The pair still remains well short of the Friday highs at $0.7291.
  • Price action elsewhere has been largely rangebound. EUR/CHF remains a focus, with the cross in a holding pattern below the 1.05 handle. Some attention was paid to the weekly SNB sight deposits data, with CHF running slightly higher as the data showed the central bank did not meaningfully intervene in the FX rate despite recent CHF strength.
  • JPY trades at the bottom end of the G10 table, with USD/JPY back above the Y114.00 handle as equities improve off lows. Progress is needed through Friday's 114.54 to cement any improvement in the near-term outlook.
  • GBP is similarly offered, further reinforcing the view that recent rallies have been corrective in nature. Moves also follow Friday's CFTC release showing the GBP net position had deteriorated to its largest short position in over 12 months.
  • The data slate is typically light for a Monday, with US existing home sales and Eurozone consumer confidence data the sole releases. ECB's Holzmann, de Cos and de Guindos make up the speaker schedule.

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