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AUD was the worst performer in the G10........>

FOREX
FOREX: AUD was the worst performer in the G10 space on Wednesday as political
uncertainty continued to undermine confidence after PM Turnbull's very near-miss
confidence vote. With further leadership challenges expected, markets were happy
to sell the AUD and take profits on a four-session long AUD/USD winning streak
that stopped just short of the 50-DMA ($0.7384).
- The greenback also traded with a loftier risk premium following yesterday's
verdicts against two Trump aides, with market seemingly unsure on what Trump's
next steps will be. Nonetheless, imminent China/U.S. trade talks could provide
direction, with further U.S. tariffs set to go into effect at midnight tonight
(EST). The US$ came under additional pressure after the FOMC released a
balanced/dovish set of minutes but the DXY has recovered from lows.
- NOK, CAD and NZD were among the best performers on Wednesday as WTI and Brent
crude futures added near 3% apiece. DoE and API oil inventory numbers proved
supportive and the softening USD also underpinned energy markets.
- GBP has been unreactive to recent Brexit based headlines.
- ECB minutes and flash Eurozone PMIs provide the highlights on Thursday.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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