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MNI Speaks With St. Louis Fed President Bullard


Heading South

AUSSIE: AUD/USD last trades at $0.7040, a handful of pips lower on the day, as
the Aussie is modestly pressured by softer than exp. Chinese credit data,
released on Sunday.
- This comes after the rate added almost 30 pips Friday, although it initially
edged lower in the Asia-Pacific hours, as NAB changed its RBA call to two 25bp
cuts to the policy rate in July and November of this year, before Chinese trade
data revealed a narrower than expected trade surplus and a particularly weak
breakdown. However, AUD/USD bounced thereafter, as broader USD weakness came to
the fore on the back of a soft headline NFP print.
- Initial bearish attention is drawn to the lower 1.0% 10-DMA envelope at
$0.7022. A break below would open up the lower Bollinger band (2%), located a
further 10 pips below. Meanwhile, bulls target the 100-HMA at $0.7043 before
challenging the cloud base at $0.7068.
- Australian focus next week turns to remarks from RBA Dep Gov Debelle, as well
as NAB business confidence data, both scheduled for Tuesday.