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Weakness in the AUD/USD cross triggered......>

AUSSIE
AUSSIE: Weakness in the AUD/USD cross triggered broader USD strength overnight.
The main driver behind the move was the Australian political situation, with PM
Turnbull caught in a leadership crisis. Many of his senior ministers have
tendered their resignations, stating that he no longer has the support of the
Liberal Party. Parliament has been adjourned until Sep 10, with a runoff between
Scott Morison and Peter Dutton the likely outcome at present.
- AUD/USD last trades at $0.7290, after registering a low of $0.7283, breaching
the Aug 20 low ($0.7296), and the 50% retracement of the move from $0.7203 to
$0.7381 ($0.7292). Ultimately bears need to break Friday's low ($0.7253) to
regain control.
- The AU docket is thin over the next week, with focus on Q2 CapEx, due next
Thursday. This will leave AUD/USD subject to the broader USD trend & AU
politics.
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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