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Iron Ore Weakness Spills Over Into AUD

FOREX

AUD retreated alongside iron ore futures, leading commodity-tied FX space lower, amid continued worry surrounding China's plans to reign in the recent surge in commodity prices. A beat in Australia's flash retail sales & the best M'fing PMI print on record failed to provide any support to the Aussie dollar. Commodity currencies have been the worst G10 performers this week.

  • The PBOC set its central USD/CNY mid-point at CNY6.4300, 13 pips above sell-side estimates. Nonetheless, USD/CNH stuck to a tight range and last trades virtually unchanged.
  • The greenback stabilised after yesterday's slide and the DXY wavered within a narrow range around Thursday's close.
  • Global flash PMI readings, UK & Canadian retail sales, U.S. existing home sales & EZ consumer confidence take focus from here. Speeches are due from Fed's Kaplan, Bostic, Barkin & Daly, ECB's Lagarde, BoE's Haused & Riksbank's Jansson.

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