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AUD/USD Dragged Down by Copper Correction


Australian Greenback Evaluation and Speaking Factors

  • Copper Drags AUD Decrease
  • Little Conviction Forward of FOMC
  • Yuan and Price Differentials Working In opposition to AUD/USD

AUD Sentiment Mushy Forward of FOMC

AUD: As market members await the FOMC assembly, there’s little in the best way of any conviction trades throughout the FX house. Softer sentiment within the AUD not helped by the pullback in copper costs, which has now entered into correction territory having fallen over 10% from the Might peak. In flip, AUD/USD is nearing the lows of its latest vary after a dip beneath 0.7700. Elsewhere, the latest makes an attempt by Chinese language officers to stem the rise within the Chinese language Yuan has been one other issue that has stored upside within the Aussie restricted. For what to look at relating to the FOMC, click on right here

Copper Corrects From Might Peak

Supply: Refinitiv

Having a look on the chart, help resides at 0.7640-50, whereas on the topside resistance is located at 0.7750. Given the relative calm in markets, I believe this would be the vary for AUD till tomorrow. Additionally essential to maintain an in depth watch on US/AU price differentials, which stay in favour of the dollar and thus ought to differentials head decrease, count on AUD/USD to comply with swimsuit.

AUD/USD vs AU/US Price Differentials

Supply: Refinitiv

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