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Still Wedged Under 0.6600, Quiet Data Today, Wednesday Has CPI

AUD

AUD/USD remains wedged under 0.6600. The pair tracks near 0.6575 in early Monday Asia Pac trade, after losing ground modestly on Friday. The pair remains within recent ranges though.

  • In terms of technicals, on the downside focus is on 0.6526, the Dec 7 low and the next key support. A clear break of this support would open 0.6500, a Fibonacci retracement. Initial resistance is at 0.6629, the 50-day EMA, on the topside.
  • Cross asset trends consolidated through Friday, with US yields gravitating higher through US trade, but not making fresh highs relative to early in the week. US equities finished down a touch (SPX -0.07%), while commodity indices were a touch higher.
  • Iron ore is back closer to $137/ton, while copper finished down a touch (-0.4% for CMX).
  • The data calendar is empty today, with Dec retail sales out tomorrow. The main focus will be on Wednesday's CPI print for Q4, which comes ahead of next week's RBA meeting.

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