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AUD/USD trades flat at $0.6869. On the.......>

AUSSIE
AUSSIE: AUD/USD trades flat at $0.6869. On the radar today are Australian trade
balance and Chinese inflation data.
- The Aussie continued this year's so far uninterrupted rout Weds, even as the
de-escalation of U.S.-Iranian tensions brought some relief to risk appetite,
limiting intraday losses to just a handful of pips. AUD continues to be weighed
on by domestic bushfire crisis & its expected economic fallout. Markets
currently price in a ~55% chance of a 25bp cut from the RBA in Feb.
- Meanwhile, geopolitics took the centre stage on Weds as participants digested
reports re: U.S.-Iran situation. U.S. Pres Trump's preference for economic
sanctions over military action, suggested in his televised address, prompted
AUD/USD to bounce from intraday lows in U.S. hours.
- A fall through the Dec 17 low of $0.6838 would see the downside momentum
intact, turning the focus to the trendline support/61.8% retracement of the Oct
2 - Dec 31 rally at $0.6811/09. A bounce above the 200-DMA at $0.6894 would give
bulls some reprieve, brining the Jan 7 high of $0.6943 into play.
- Australian retail sales data is due tomorrow.

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