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Politics Dominates Weekend Headlines Ahead Of RBA Decision Day

AUD

AUD/USD sits marginally above neutral levels, last +8 pips at $0.6997. A slew of public holidays across the Asia-Pacific, listed elsewhere, will sap liquidity today.

  • Should the rate manage to take out Jan 7 low of $0.7130, bulls could get some reprieve. Meanwhile, a fall through Jul 16, 2020 low of $0.6963 would shift focus to Jul 14, 2020 low of $0.6921.
  • Domestic headline flow has been dominated by political news, with polling pointing to further headwinds for the Liberal-National Coalition ahead of this year's federal election. The Coalition fell further behind Labour, while PM Morrison's net approval rating took a hit.
  • The RBA will deliver their monetary policy decision tomorrow (our preview is forthcoming). The Reserve Bank is expected to announce the termination of its QE programme, although any tweaks to the forward guidance re: interest rates will provide more interest.
  • Elsewhere, Australia's retail sales (Tuesday) as well as trade balance & NAB Business Confidence (Thursday) will draw attention this week.

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