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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
AUD
AUD/USD sits slightly below session highs post the stronger than expected Q3 CPI print. We were last at 0.6380/85 after post data highs ran into resistance near 0.6390 (today's high is 0.6389). This is close to resistance at 0.6393 the Oct 18 high.
- The pair is above the 20-day EMA (near 0.6365), while the 50-day sits at 0.6417.
- RBA November tightening expectations have jumped to above 75% post the data. The chart below plots spot AUD/USD against the market projected 3month rate differential in 1yrs time with the US. This has risen sharply and is pointing to further AUD upside.
- A counter point is generally subdued metal prices, see the green line on the chart. However, iron ore has firmed in light of fresh China fiscal stimulus.
- Looking ahead, tomorrow's Senate testimony for RBA Governor Bullock takes renewed focus in light of today's data.
Fig 1: AUD/USD Versus AU-US Policy Rate Expectations & Base Metal Prices
Source: MNI - Market News/Bloomberg
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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