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The latest round of dovish rhetoric has......>

DOLLAR
DOLLAR: The latest round of dovish rhetoric has seen the dollar lose ground
overnight. AUD sits top of the pile with reported real money demand taking the
rate back above $0.70.
- The DXY touched recovery highs of 97.13 yesterday, before resistance from the
200-dma countered. The index drifted lower through a quiet Asia session to hold
at the base of its 96.88-97.11 range. The Jul 11 low & 100-dma provide near-term
support at 96.79/77, below here opens the 50% retracement level of the Jun-Jul
rally at 96.50.
- Gold topped out at $1410 overnight, before drifting toward the $1405 level.
Bulls need to clear the 50% retracement of $1427.23-1401.60 at $1414.42, before
challenging yesterday's high at $1427.23. A downside break of $1400 brings the
21-dma back into view at $1395.64.
- WTI & Brent sit around $0.30 above their respective settlement levels.
- US PPI the main highlight today at 1230GMT. Final demand PPI is expected to
rise by 0.1% in June after a modest 0.1% May increase. No Fed speakers scheduled
today.

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