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AUD/USD trades flattish at $0.6875, with.....>

AUSSIE
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.

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