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AUD/USD had made marginal improvements to....>

AUSSIE: AUD/USD had made marginal improvements to Monday's gains, aided by
AUD/JPY's close above some key moving averages, but a modest degree of USD
strength over the last couple of hours has seen the cross revert to unchanged
levels around $0.7465.
- Today's headline AU NAB business survey prints were stable, although the
breakdown revealed no sign of a pick-up in the inflationary measures. All of the
survey's key price measures edged lower in June. Added to this was a drop in
employment sub-index, though the current level is still consistent with jobs
growth of ~20K a month. Still it may not be sufficient to push the jobless rate
gradually lower especially if there is an increase in labour participation.
AUD/USD paid little attention to the release.
- Bulls now need a close above the 55-DMA ($0.7499) to hint at a move back to
$0.7611-0.7735. Daily studies are well placed for a fresh leg higher before
overbought becomes an issue. Bears now need a close below the 21-DMA ($0.7419).
The remainder of the week provides little in the way of domestic risk events, so
focus is likely to remain on the global risk environment.
MNI London Bureau | +44 0203-865-3809 |
MNI London Bureau | +44 0203-865-3809 |

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