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Sep 05 - 01:55 AM

AUD/USD - Undermined By Higher US Yields; RBA Holds Rates

By Krishna K  —  Sep 05 - 12:50 AM
  • AUD/USD -0.5% in Asia as U.S. yields rally; 2-yr, 10-yr +4bps from Fri close

  • Opened at 0.6461, sold down to 0.6417 with very little bounce seen

  • RBA leaves rates unchanged at 4.10% as expected, stays slightly hawkish

  • Warns further tightening might be needed; taken in stride by markets

  • Higher-for-longer Fed rate view, "Goldilocks" U.S. economy undermine AUD

  • China's August services activity slows amid sluggish demand, weighs

  • Australia economy gets a boost from visitors, infrastructure splurge

  • Net exports impact on Q2 GDP +0.8 pct points vs. +0.3 expected

  • Allays concerns of negative GDP Wed set off by business inventories drop

  • Support 0.6400-05, break opens 0.6365-80; resistance 0.6460, 0.6480

  • For more click on FXBUZ

Source:
Refinitiv IFR Research/Market Commentary

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