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AUSSIE: AUD/USD trades flat at $0.6729 with Westpac cons. conf. coming up today.
- On Tuesday, the rate round tripped from its intraday high of $0.6757, driven
by swings in sentiment re: U.S.-China trade talks. AUD appreciated alongside the
yuan and kiwi initially as investors weighed China's confirmation that VP Liu &
PBoC Gov Yi will take part in the upcoming U.S.-China trade talks. That said,
London hours saw AUD/USD lose ground as risk appetite deteriorated. Reports
pointing to new bones of contention between the U.S. and China added weight to
AUD/USD, dragging it into negative territory. Worth highlighting that U.S.-China
tensions escalated in the run-up to Thursday's round of high-lvl trade talks.
- On Tuesday, the pair was locked between the 23.6% & 38.2% retracements of the
Sep 12 - Oct 2 slide at $0.6724 & $0.6757 respectively. Bears look for a fall
below $0.6724 before targeting the low of Oct 3/psychological barrier at
$0.6702/00. Bulls need to take out $0.6757 before challenging the 50-DMA, which
intersects at $0.6779.
- Remaining Aussie data releases this week include housing finance data and
consumer inflation expectation, both due Thursday.
MNI London Bureau | +44 203-865-3806 |
MNI London Bureau | +44 203-865-3806 |