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The uptick in risk sentiment, stemming.......>

AUSSIE
AUSSIE: The uptick in risk sentiment, stemming from the late bid in Chinese
stocks on Tuesday, coupled with the yuan's strength on the back of MNI sources
reporting that the PBoC may "vigorously defend the Yuan if USD/CNY nears 7.00" &
reports noting that the PBoC met with domestic banks on Monday, to warn them
against herd behaviour re: the yuan aided the AUD on Tuesday, with AUD/USD
touching a high of $0.7440 during the session.
- This was before the USD started to recoup broader losses.
- The pair last trades at $0.7430, ticking up on the back of some early yuan
strength.
- Holding above $0.7400 keeps the near-term focus higher and on the 50-DMA &
down trendline resistance, both located at $0.7446. Further layers of resistance
are placed at $0.7466/86 and a move above here would confirm the bullish trend.
Bears now look for a close below $0.7380/85 to re-test major trendline support
at $0.7324 for confirmation and challenge the YTD low at $0.7311.
- RBA Gov. Lowe is due to speak today, ahead of Friday's SoMP, with AU housing
finance data also due today.
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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