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Soft Australian core CPI readings and........>

AUSSIE
AUSSIE: Soft Australian core CPI readings and marginal negative revisions to Q2
core CPI metrics weighed on the AUD early Wednesday. It is worth noting that the
RBA has previously warned of "one-off declines in some administered prices in
the September quarter."
- Slowing Chinese official PMI data added additional weight, with the new export
orders sub-index hitting the deepest rate of contraction observed since
2016..... signs of a trade war?
- Buoyant regional equities leant support through the latter half of the
session, leaving AUD/USD at $0.7093 last, after registering a low of $0.7072.
- The Oct 29 low at $0.7051 provides initial support, with bears ultimately
focused on Friday's low at $0.7021, just ahead of the psychological $0.7000
level. Bulls focus on the Oct 17 high at $0.7160, a break changes the short-term
outlook targeting the $0.7200 level and bear channel top.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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