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AUSSIE: AUD/USD is back to nearly unchanged, last sits at $0.6841. The rate
slipped earlier in the session as AFR published an exclusive piece titled
"Government's debt manager readies for QE" (the content was less punchy than the
headline, when read at length). The formation of a head and shoulders reversal
pattern on a daily chart may have also undermined AUD. That being said, AUD/USD
failed to make a sustained move under the trendline support at $0.6829 and edged
back towards neutral levels. Recovery was driven by a press briefing from
China's National Health Commission, which helped soothe the nerves re:
coronavirus somewhat. Elsewhere, the Sydney Morning Herald reported that "a
Brisbane man who recently visited family in China does not have a serious
coronavirus" and has been released from isolation.
- A convincing break below the aforementioned trendline support would please
bears, turning their focus to the Dec 10 low, located right at $0.6800. Bulls
look to retake the 100-DMA at $0.6844 before targeting the $0.6870 50-DMA.
- The main point of note ahead is Australian labour market report, due Thursday.
Friday's flash CBA PMIs will also be watched.
MNI London Bureau | +44 203-865-3806 |