Trial now

RBC: Receive 1Y1Y Vs. U.S.




Won Stronger, PPI Rises Again

AUSSIE: Australian markets were shut for a public holiday on Monday, but matters
surrounding China's coronavirus inspired a sharp sell-off in AUD/USD. Increasing
death toll & new cases reported in China and elsewhere (including Australia)
stirred up pre-existing concerns, inspiring a flight to safety. Risk aversion
spilled over into the commodity space, adding pressure to the Aussie. As a
result, AUD/USD celebrated the Australia Day by crashing through support from
the Nov 27 low of $0.6754 and matching the Oct 17 low of $0.6752. 
- The rate trades unchanged at $0.6761 at typing. Bears remain in the driving
seat, with the latest sell-off heralded by a head & shoulders top formation. A
fall below $0.6752 would allow the downside momentum to pick up, bringing the
Oct 16 low of $0.6724 into view. Bulls look for a rebound above the $0.6800 mark
(also the low of Dec 10). A break opens the former trendline at $0.6835.
- Australian NAB Consumer Confidence Survey is due later today. CPI hits on
Wednesday, while PPI and private sector credit data come out on Friday.