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Pressured After RBA Minutes, WPI & PBOC Rate Cuts

AUD

AUD/USD sits at $0.6465/70, the pair is ~0.3% lower today.

  • The RBA minutes of the July policy meeting noted that there are early signs that the labour market might be at a turning point and that the bank sees a credible path to inflation target at current rates.
  • Q2 Wage Price Index was softer than forecast printing at 0.8% Q/Q vs 0.9% exp.
  • Losses seen after the PBOC unexpectedly cut 1-Year MLF and the 7-Day Reverse Repo rates have extended in recent dealing.
  • Short term AUD/USD trend conditions remain bearish, support comes in at $0.6458 low from May 31 and bear trigger.

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