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Erases Lowe-Inspired Weakness, Confirms Reversal

AUD
  • AUD/USD extended losses through the Tuesday European morning to touch intraday/weekly lows 0.7325 following a somewhat dovish speech from RBA governor Lowe overnight. This price action has, however, reversed - with a lower-than-forecast US CPI reading providing the impetus for the recovery.
  • The late recovery puts the pair in close proximity to option interest at $0.7370-75 (A$477mln).
  • This puts the pair back to broadly flat on the session, with market focus turning to topside resistance at the Sep 10 / Sep 3 highs of 0.7410/78, These mark the bull trigger for the pair.
  • Next risk event for the pair is due on Thursday - with the August jobs data expected to show a loss of 80,000 jobs across the month.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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