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###POV: AUDUSD SET TO BREAK ABOVE $0.80?.....>

AUSSIE
AUSSIE: ###POV: AUDUSD SET TO BREAK ABOVE $0.80?
-AUD UPSIDE MOMENTUM: A sustained AUDUSD move above the 0.80 level will likely
put the focus back on the 0.8125 high from 2017 (Sept 8) as momentum indicators
continue to push higher, giving bullish signals.
- The AUD pullback after disappointing Aussie jobs reading for Dec (5.5% v 5.4%
consensus) has been limited, highlighting underlying support remains intact.
-AUDUSD has witnessed steady gains off its Dec 8 low of $0.7502 to $0.8023, but
has lagged the gains seen by the NZD. While Australian related commodity price
indices have corrected lower recently, iron ore prices are showing signs of a
renewed rebound.
-A combination of a weaker USD (DXY at lowest since late 2014) and China GDP
data showing continued robust growth, are keeping risk-on trades underpinned.
-AUDUSD DOWNSIDE RISK: With the USD oversold in 2018 a substantial correction
could halt further AUD gains. Traders are also looking ahead to RBA Feb 6
meeting, when, despite upbeat data, the RBA are again likely to highlight
concerns over rising household debt.

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