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USD continues to operate on the back foot.....>

FOREX
FOREX: USD continues to operate on the back foot on Independence Day
- The JPY led the way in early Asia-Pacific trade. USD/JPY last trades around
Y110.40, after having a look at Y110.25/20 (Hourly support).
- USD weakness extended as the yuan built on Tuesday's rebound stemming from a
combination of verbal intervention from the PBOC & rumoured physical
intervention via the Chinese state owned banks on Tuesday. USDCNH & USDCNY now
trade over 8 figures off of their recent respective highs, underpinning a pull
back in the USD.
- Aussie benefitted from stronger than exp. retail sales data & CNY strength,
shrugging off the soft AU trade balance print. AUD/NZD hovers around the long
term trend-line resistance at NZ$1.0940, after PBOC market assurances, firmer
oil and gold prices pushed the cross above the level on Tuesday. A clean break
above would shift bulls' focus to NZ$1.1000 area and the YtD high at 1.1073.
- Focus on Wednesday falls on EZ & UK Services & Composite PMIs.
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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