AUD: AUD/USD - Trades Heavy Toward 0.7100
The AUD/USD has had a range today of 0.7101-0.7121 in the Asia- Pac session, it is currently trading around 0.7100, -0.21%. The pair continues to consolidate just above 0.7100 albeit with an offered tone unable to get any upward momentum as of yet. Risk continues to trade on the front foot, with Oil falling again on Trump reporting a productive meeting with Iran. Yet currencies continue to trade with a heavy tone, there is a clear disconnect and the relationship between Risk and the US Dollar seems to be diverging. How long does that last? What is telling us? The AUD has been a favoured long while risk trades on the front foot, in the current environment I would have expected it to be performing better. On the day, while the support between 0.7050-0.7100 holds the Bulls will continue in their attempt to reassert its uptrend. The AUD has found rallies being faded toward the 0.7130-0.7160 area initially. A sustained break above there and the bulls could potentially wrest back control but a sustained move back below 0.7000-0.7050 would start to become problematic. * MNI: Payback Expected For July's Weak Employment Outcome, Data Volatile. August jobs print on Thursday and are expected
21%. 7100 albeit with an offered tone unable to get any upward momentum as of yet. Risk continues to trade on the front foot, with Oil falling again on Trump reporting a productive meeting with Iran. Yet currencies continue to trade with a heavy tone, there is a clear disconnect and the relationship between Risk and the US Dollar seems to be diverging.
How long does that last? What is telling us? The AUD has been a favoured long while risk trades on the front foot, in the current environment I would have expected it to be performing better. 7100 holds the Bulls will continue in their attempt to reassert its uptrend.
7160 area initially. 7050 would start to become problematic. * MNI: Payback Expected For July's Weak Employment Outcome, Data Volatile. 9% respectively.
The data are volatile and so 3-month averages are needed to gauge the trend. They have signalled a gradual easing in labour market conditions, which the RBA has welcomed in its fight to return inflation to target. 5% is still a "bit tight" but if it edged towards 5%, it could be high enough to ease price pressures. 7, there was a pickup in Q3 signalling GDP growth may have improved in the quarter.
8, which was impacted by geopolitical uncertainty and jump in fuel prices. However, Q3 services PMI was also higher than Q1 and Q4 signalling resilience. Cost growth rose to its highest for Q3 driven by services but importantly selling price inflation also increased implying increased cost pass through but both measures are below Q2's highs. The RBA will continue to watch second-round effects from higher fuel costs as it worries upside inflation risks are "materialising".
The market has a 86% chance of a hike on 29 September. 7180(AUD578m). P