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Sep 06 - 03:55 PM

AUD/USD - Investors Seek Safety As 50Bps Fed Cut Seems Unlikely

By Christopher Romano  —  Sep 06 - 01:45 PM
  • NY opened near 0.6735 after a tight range traded in the overnight session

  • Pair spiked up to 0.67675 after Aug payroll as yields US2YT=RR, US$ fell

  • Rally reversed though as probability Fed would cut 50bps in Sept dropped

  • Remarks from Williams, Waller, Goolsbee didn't indicate 50bps cut is due

  • Risk soured; stocks ESv1, commodities XAU=HGv1 fell, USD/CNH rallied

  • Yen buys sank AUD/JPY toward 94.80; US yields remains lower on the session

  • AUD/USD fell below the 10- & 21-DMAs and pierced the 55-DMA, hit 0.6660

  • Daily bearish engulfing formed, reinforced bearish signals from falling RSIs

  • China Aug. PPI, CPI & trade balance are data risks to begin next week

  • For more click on FXBUZ

Source:
Refinitiv IFR Research/Market Commentary

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