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FOREX: Antipodeans Notably Weaker, AUDUSD at Support

FOREX
  • AUD: With the moderate greenback bid persisting following the stronger US retail sales and import price data, AUDUSD (-0.61%) finds itself as the weakest major pair and notably trades back down to the prior breakout level around 0.6715. This level closely matches with initial firm support at 0.6708, the 20-day EMA. Overall, bullish conditions remain intact for the pair and the latest pullback appears to be a correction.
  • NZD: In similar vein, NZDUSD trades half a percent lower and is now below 0.6050, a notable pivot level on the chart. Overnight NZDUSD straddle pricing points to a 35 pip breakeven which incorporates the second quarter CPI print scheduled overnight. We pointed out yesterday that some desks have noted RBNZ cut expectations seem to be relatively stretched at this point, potentially setting a high bar for tomorrow’s data to confirm the market’s bias.

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