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EUR/AUD Approaching Congestion Amid Thin Participation

AUD
  • Moderate pullback in US Treasury yields continues to weigh on the dollar through the European open, helping EUR/USD hold just below the session highs at 1.0657.
  • As was the case on Friday, participation remains low ahead of key risk events later this week (namely the BoC, RBA, BoJ rate decisions as well as NFP on Friday), with futures volumes around 15-20% below average for the main G10 currencies.
  • EUR/AUD is a particular cross of focus, with the rate approaching congestion resistance layered between 1.5816-28. Clearance here would mark a bullish break, and put prices at the best levels since mid-December.

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