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AUD/USD sank 70 pips on Tuesday extending....>

AUSSIE
AUSSIE: AUD/USD sank 70 pips on Tuesday extending its losing streak, which has
lasted uninterrupted since the beginning of the year. The Aussie's
underperformance coincides with participants ratcheting up their RBA easing
bets, with the IB strip now pricing in a 58% chance of an RBA cut in Feb vs. the
38% priced at the turn of the year. Tuesday's move was driven by concerns over
the economic effect of Australian bushfire crisis and a very weak ANZ job ads
print. Accompanying note attributed the bleak release to the bushfires. They
were also blamed for a drop in ANZ weekly consumer confidence gauge.
- Australian data releases resume today, with the publication of building
approvals & job vacancies. Trade balance & retail sales are due on Thursday &
Friday respectively. Elsewhere, Chinese CPI & PPI come out on Thursday.
- The rate has shed 9 pips on a risk-off reaction to reported Iranian attack on
an Iraqi base hosting U.S. troops, last trades at $0.6860. After AUD/USD
penetrated its 200- & 50-DMAs on Tuesday, bears focus on the Dec 17 low/100-DMA
at $0.6838/31. A fall below would open trendline support at $0.6809. Bulls need
a bounce above the 50-DMA at $0.6869 before targeting the $0.6895 200-DMA.

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