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AUD/USD regains 0.9400

FXstreet.com (Edinburgh) -Upbeat data from the Chinese manufacturing PMI gave the AUD/USD further impulse beyond the 0.9400 handle on Monday, climbing as high as the vicinity of 0.9440.

AUD/USD to follow risk trends

Empty docket for the Aussie dollar and China ahead in the week would leave the pair to the mercy of the risk trends, while market participants continue to digest last week’s FOMC ‘no-taper’. However, interesting calendar in the US economy combined by plenty of Fedspeak would add volatility in the USD-side of the equation. According to analysts at TD Securities, “We judge that after sitting on the sidelines for the last few months, the RBA is likely to be back jawboning the currency at its next meeting in October… The appreciation of the AUD in recent days, if sustained, does raise the probability of more policy easing by the RBA, a natural ceiling against further AUD appreciation”.

AUD/USD key levels

At the moment the pair is now up 0.31% at 0.9423 with the next hurdle at 0.9459 (high Sep.20) ahead of 0.9524 (high Sep.19) and finally 0.9530 (high Sep.18). On the flip side, a breakdown of 0.9379 (23.6% of 0.8891-0.9530) would expose 0.9377 (low Sep.20) and then 0.9340 (MA10d).

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