Free Trial

AUD/USD slid to the session low of $0.6779...>

AUSSIE
AUSSIE: AUD/USD slid to the session low of $0.6779 before entirely recouping
those losses, as conflicting signals rolled in. The initial sell-off was
inspired by the decision of Citi and NAB to bring their respective RBA easing
calls forward and join the cohort of desks expecting a 25bps cut to the cash
rate in October. A helping hand came from offshore with a lift in Chinese yuan,
inspired by a stronger than exp. PBoC fix and the announcement of a Hong Kong
auction of central bank bills. A weaker USD also helped recovery.
- The rate sits at $0.6797, now a touch higher on the day. Bulls look for
further recovery through the $0.6800 figure towards $0.6831/32, which represents
yesterday's high/38.2 % fibo retracement of the Jul 19 - Aug 7 slide. A close
above is needed to improve the outlook. Bearish focus remains on the 61.8%
retracement of its Sep 3-Sep 12 rally, situated at $0.6767.
- Worth keeping an eye on the news wires as deputy-level envoys from the U.S.
and China meet over the negotiating table. Aussie data highlights next week are
flash CBA survey from CBA (Monday), skilled vacancies (Wednesday) and job
vacancies (Thursday). Tuesday will see RBA Governor Lowe deliver a speech.

To read the full story

Close

Why MNI

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.