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AUD/USD trades flat at $0.6817 ahead of......>

AUSSIE
AUSSIE: AUD/USD trades flat at $0.6817 ahead of today's RBA MonPol decision,
with mkts pricing in only a modest ~8% chance of a rate cut. Our RBA preview can
be accessed at https://emedia.marketnews.com/RBA_Preview_Dec_2019.pdf.
Australian Q3 net exports & BoP current a/c data are also due today.
- The rate rallied 56 pips Monday, breaching its 50-DMA & testing the 100-DMA in
the process. Stronger than exp. off'l Chinese PMIs from over the weekend gave
AUD/USD the initial impetus, despite lack of apparent progress on the U.S.-China
trade front. The NY session brought a sell-off in USD, accelerated by misses in
U.S. ISM m'fing & construction spending, prompting a jump in AUD/USD.
- The rate is flirting with its 100-DMA at typing and a clean break here would
shift bullish focus to the Nov 19 high of $0.6835, the key near-term resistance.
Above opens the highs of Nov 12 & 13 at $0.6857. Bears would like to see a
retreat under the 50-DMA/mid-point of Oct rally at $0.6807/01, before targeting
the 61.8% retracement of that rally, located at $0.6770.
- Looking further ahead, Australian Q3 GDP comes out tomorrow, with retail sales
and trade balance due on Thursday.

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