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Softer Iron Ore & Copper prices crimped......>

AUSSIE: Softer Iron Ore & Copper prices crimped demand for AUD on Wednesday as
protectionist worries continue to do the rounds ahead of U.S. President Trump's
formal decision on the implementation of tariffs on China (due Friday).
- Yesterday's retail sales print (coupled with the higher revision) would have
provided some solace to the RBA. As would the 3-Month BBSW fixing 1.8bp lower
today, a 5th consecutive lower fixing, as FY end pressures alleviate. This will
please the RBA, after it noted that "short-term wholesale interest rates have
increased over recent months. This is partly due to developments in the U.S.,
but there are other factors at work as well. It remains to be seen the extent to
which these factors persist."
- AUD/USD last deals at $0.7375, support is noted at $0.7355/38 (61.8%/76.4%
retracement of the move from $0.7311 to 0.7425), while resistance is seen at
$0.7438 (hourly recovery high Jun 25).
- The major point on today's domestic docket comes in the form of a speech from
the RBA's Heath, at the Urban Development Institute of Australia.
MNI London Bureau | +44 0203-865-3809 |
MNI London Bureau | +44 0203-865-3809 |

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