Free Trial

AUD/USD last trades at $0.6761, barely.......>

AUSSIE: AUD/USD last trades at $0.6761, barely changed. No reaction to RBA Asst
Gov Bullock's speech re: business & financial stability has been noted.
- After ticking higher in early Asia-Pac trade on Wednesday, the rate slumped on
the back of unexpectedly dovish RBNZ action. New Zealand's central bank trimmed
its OCR by 50bps, with consensus calling for a 25bps cut, while during the
subsequent presser RBNZ Gov Orr mentioned reviewing different policy options,
including non-conventional tools. The move didn't deter dip-buyers and the pair
clawed almost all of its earlier losses through the rest of the day. Recovery
was likely aided by an SCMP report stating that negotiators from the U.S. and
China are expected to meet in September as planned.
- The post-RBNZ rout sent AUD/USD to its worst levels since Mar 2009 of $0.6677.
Bears initially look for a dip through the lower Bollinger band (2%) at $0.6711,
which would bring the aforementioned 10-year low into view. Bulls need to
recover the trendline at $0.6776 and the $0.6800 mark to regain some poise.
- Comments from RBA Gov Lowe and the latest SoMP are due tomorrow. China's trade
& inflation data, due today & tomorrow respectively, will also provide interest.

To read the full story



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.