Free Trial

Falters Below $0.7200

AUSSIE

AUD/USD sank Wednesday, landing below the $0.7200 mark. The rate dipped after the release of minutes from the FOMC's most recent MonPol meeting, as the Fed appeared to moderate its stance on the potential to clarify its forward guidance and showed limited appetite for using YCC in the near term.

  • The AFR reported that Treasurer Frydenberg secretly pushed back against the Foreign Investment Review Board & Treasury recommendation to approve China Mengniu Dairy Co's AUD600mn acquisition of Lion Dairy & Drinks without announcing his decision to the public.
  • Elsewhere, BBG cited an ex-RBA researcher as noting that Australia's central bank still needs to make a compelling case against negative interest rates.
  • The rate last sits at $0.7186, little changed on the day. A breach of Aug 12 low of $0.7109 would allow bears to set their sights on Aug 3 low of $0.7076. Conversely, a rally above Wednesday's high of $0.7276 would give bulls a green light for targeting Feb 2019 high of $0.7284.
  • Looking ahead, Australian flash CBA PMIs & preliminary ABS retail sales are due Friday.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.