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AUD/USD added 14 pips overnight, but.........>

AUSSIE: AUD/USD added 14 pips overnight, but remains stuck in a familiar range.
Stronger than exp. central yuan fixing from the PBoC & the Australian Work
Commission lifting minimum wages by 3.0% proved supportive, despite trade war
worries and underperforming equities. The Aussie also ignored the fact that
Fitch now exp. Australian GDP growth to slow to 2% this year, which would be the
worst pace since the financial crisis.
- Australian data failed to provoke more than a short-lasting knee-jerk lower,
as decent revisions in the second est. of 2019.20 capex negated softer than exp.
Q1 capex & building approvals prints.
- AUD/USD last seen at $0.6931. A breach of the 21-DMA at $0.6941 would expose
the 61.8% fibo retracement of the YtD range, which comes in at $0.6953. Above
here brings the upper 1.0% 10-DMA envelope at $0.6975 into play. Bears look for
a dip below $0.6904, which provided support yesterday, before challenging the
May 24 low of $0.6881.
- Tomorrow's release of private sector credit data out of Australia is of note.
Focus will also fall on China's official PMI readings.

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