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AUDUSD Struggles To Hold Above 66c, Surveys & WPI Coming Up

AUD

AUDUSD trended higher through most of Monday supported by risk appetite to a high of 0.6605 but then weakening US equities weighed on Aussie and the pair fell back below 66c to 0.6586 to be up 0.1% on the day. It is currently around 0.6588. The USD index rose 0.2%.

  • Yesterday’s high in AUDUSD approached the 50-day EMA of 0.6615 demonstrating a corrective cycle in play. A clear break of this level would undermine the bearish theme. Initial support is at 0.6472.
  • Risk-averse currencies underperformed resulting in AUDJPY up 0.6% to 96.92 but off the intraday high of 97.85. AUDNZD moderated over Monday to be down 0.1% to 1.0941. AUDEUR rose 0.1% to 0.6025 and AUDGBP +0.2% to 0.5159.
  • Equities finished mixed with Euro stoxx down 0.1%, S&P flat and the FTSE up 0.5%. Oil prices rallied strongly with Brent up 3% to $82.05/bbl. Copper rose 1.9% and iron ore is around $100/t.
  • Today Q2 WPI prints and Bloomberg consensus is expecting a rise of 0.9% q/q and 4.0% y/y. August Westpac consumer confidence and the July NAB business survey are also released.

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