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AUD/USD Trades Near YtD High

AUSSIE

AUD/USD pushed higher Wednesday, with USD gyrations ahead of the FOMC
decision eyed. The rate extended gains to a fresh YtD high after the Fed
held rates near zero and left the pace of QE unch., with Fed Chair Powell
warning that the path to economic recovery may be long and uncertain.
AUD/USD ticked off best levels into the close, but remained buoyant as the
greenback underperformed all of its G10 peers.

  • BBG ran an article this morning, noting that the Australian gov't is
    lowballing the price estimate of iron ore, one of the nation's key exports.
    Last week's economic & fiscal update was based on the estimate of $55/ton,
    even as mkt price is almost double that.
  • AUD/USD trades flat at $0.7187 at typing. A break above Apr 18, 2019 high
    of $0.7199 would expose Apr 17, 2019 high, located 7 pips further up.
    Bears keep an eye on Jul 24 low of $0.7064.
  • Australian building approvals & terms of trade headline the local docket
    today, with private sector credit & PPI coming up on Friday.

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