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AUD: Suffers From Double Whammy Of Brexit Jitters & Iron Ore Bid


A surge in iron ore futures has applied fresh downside pressure to the pair, adding to the weight of lingering Brexit angst. The pair probed the water under the 61.8% retracement of the Sep 11 - Oct 22 rally at A$1.7889, but has not yet tested Dec 7/Oct 1 lows of A$1.7864/48. It last trades at A$1.7888, 104 pips worse off on the day, and a dip through the aforementioned levels would allow bears to target the lower 3.0% Bollinger band at A$1.7836. Conversely, a rebound above Dec 4 high of A$1.8217 would prompt bulls to take aim at A$1.8317, which represents the high print of A$1.8317.

  • AUD and GBP sit at the opposite ends of the G10 scoreboard, with sterling underperforming from the off, after UK PM Johnson & EU Commission Pres von der Leyen failed to break the current Brexit deadlock and moved the deadline for reaching accord to Sunday.
  • On the data front, Australian inflation expectations remained unchanged this month, consumers still expect prices to rise 3.5% over the next 12 months. Focus turns to UK monthly economic activity indicators.

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