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Aussie Slips Amid Geopolitical Jitters

AUD

Net negative musings on the Russia-Ukraine standoff sap strength from riskier assets. AUD/USD trades -6 pips at $0.7171, with bears looking to a dip through Feb 14 low of $0.7086 towards Feb 4 low of $0.7052. On the flip side, a rebound above Feb 10 high of $0.7249 would expose Jan 20 high of $0.7277.

  • RBA Gov Lowe flagged rising interest rates as a possible area of risk to global financial stability, given elevated debt levels and a big run up in asset prices. The Governor spoke at a G20 side event and refrained from commenting on domestic matters.
  • Focus moves to completed construction work & wage price data, both due Wednesday, as well as private capex, due Thursday. Separately, RBA Asst Gov Kent will speak to Australian Financial Markets Association on Tuesday.

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