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CNH: Aussie Clings To Iron Ore's Coattails

AUD

AUD/CNH has added 125 pips as firmer iron ore (futures on SGX reached all-time highs) has inspired broad-based demand for the Aussie. The rate last sits at CNH5.0402 and is close to erasing last week's losses/breaking above the mid-point of its YtD range.

  • Bulls look to attack the monthly high of CNH5.0724 printed on Apr 20, before shifting focus to Mar 18 peak at CNH5.0945. Meanwhile, bears need trendline support drawn off Nov 2 low & intersecting at 5.0058 to give way, before taking aim at the nearby 100-DMA at CNH4.9969.
  • Headline flow has been limited thus far, while a market holiday in New Zealand's has sapped liquidity in the Antipodes.

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