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Aussie Outperforms On Iron Ore Rally

AUD

A 10% rally in iron ore futures has allowed the AUD to move to the top of the G10 FX table, just. Iron ore has benefited from hopes re: Chinese demand, surrounding signals for looser restrictions on and more support for the Chinese property sector, while Chinese steel mill profits have surged. The AUD/USD cross sits a handful of pips higher on the day, last printing at $0.7230, after recovering from modest pressure stemming from the previously flagged round of USD strength on softer U.S. Tsy futures, which allowed USD/JPY to break above Y115.00 for the first time since '17. Technicals remain as they were earlier, with downside focus falling on the Sep 29 low ($0.7170). A break here would bring the Aug 20 low ($0.7106) into play. Conversely, a rebound above the Nov 15 high ($0.7371) would turn focus to the Nov 9 high ($0.7432).

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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