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Holding Near Post-NFP Highs

AUD

After flirting with 0.7580 on Friday a post-NFP sell off in USD helped AUD/USD higher, the rate climbed through the US session on Friday and is currently just off those levels in Asia. The pair last changes hands at 0.7674, down around 4 pips on the session.

  • A total $800m of mixed puts and calls expire today at 0.7650.
  • AUDUSD benefited from post-NFP USD sales Friday, stalling the recent bearish trend to recover back above the 50-dma. Scope is seen for a deeper pullback as part of a corrective cycle with momentum studies also trending down and unwinding a recent overbought reading. Attention is on the 50-day EMA. This has this week been probed and a clear break would strengthen a bearish case and open 0.7517, Dec 22 low. On the upside, 0.7704 marks initial resistance
  • There is no domestic data on the economic docket on Monday, participants will look ahead to NAB Business Survey on Tuesday, Westpac Consumer Confidence on Wednesday and Consumer Inflation expectations on Thursday. The AOFM will bring 2-year supply to market today.

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