AUD/USD showed as high as $0.6869 ahead of...>

AUSSIE: AUD/USD showed as high as $0.6869 ahead of the latest round of business

survey data, gaining some support from the tick lower in USD/CNH (which has

since nearly fully reversed in the wake of Chinese inflation data), with a

deterioration in the confidence and outlook metrics knocking the rate back into

negative territory, last dealing at $0.6855, a handful of pips lower on the day.

Worth reminding that the labour market sub-component of the survey sits around

average levels.

- Rate is still confined to a 15-pip range at writing.

- The 50% retracement of the Jul 19 - Aug 7 sell-off at $0.6880 provides the

first hurdle for bulls. A move above here would open the July 7 low at $0.6911.

Bears need to take out the Sep 5 low at $0.6794 to regain some poise.