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AUD/USD last seen at $0.7042, virtually......>

AUSSIE
AUSSIE: AUD/USD last seen at $0.7042, virtually unchanged at typing.
- The rate's 33 pip fall registered on Friday was primarily driven by a
strengthening greenback, which benefited from investors paring their bets that
the Fed might cut interest rates by 50bps at the next meeting. Friday's Asia-Pac
hours saw NY Fed issue a statement downplaying earlier comments from its
President Williams, which were broadly read as dovish. Downside momentum
remained, accelerated by a softer than exp. U. of Mich. Sentiment (p) and a WSJ
piece, which poured cold water on the possibility of a 50bps cut from the Fed.
- Bears would be pleased if AUD/USD extended Friday's losses, breaking below the
100-DMA & 50% retracement of the YtD range, which intersect at $0.7018. Below
opens the psychological $0.7000 barrier, which coincides with the 21-DMA & Jul 2
high. Worth noting, however, that the underlying trend remains bullish & topside
attention is drawn to the 38.2% retracement of the YtD range at $0.7083. The
fact that this level capped gains on Friday adds to its importance.
- With no Australian data releases scheduled for today, focus turns to flash
PMIs from CBA and skilled vacancies data, both expected on Wednesday.

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