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AUD/USD trades flattish at $0.6875, with.....>
AUSSIE: AUD/USD trades flattish at $0.6875, with Australian CPI report coming up
today. Official PMI readings in China will also be closely watched.
- The rate shed 30 pips Tuesday as the upcoming FOMC decision prompted investors
to shy away from risk assets. AUD/USD slid into the European session and halted
only around the WMR fix, failing to make any substantial headway beyond $0.6872,
the 76.4% Fibonacci retracement of the rally from YtD low to YtD high.
- The Aussie wasn't helped by Donald Trump's combative rhetoric re: trade talks
with China. The POTUS reiterated his complaints about China's failure to deliver
on their promises, such as agricultural goods purchases.
- AUD/USD remains heavy, extendeding its losing streak to eight consecutive
sessions. If the aforementioned $0.6872 level gives way, bears will target the
lower Bollinger band (2%) at $0.6866. A break here would further support their
case, bringing the Jun 18 cycle low of $0.6832 firmly into play. Bulls need to
reclaim $0.6900 before challenging the $0.6935-39 area, which registered a
series of highs in May-Jun.
- Looking ahead, Australian retail sales data is expected on Friday.
To read the full story
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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.