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Flash: AUD/USD prolonged rise could be foiled by RBA – Westpac

FXstreet.com (Lisbon) - The break of 0.9233 was very positive from a technical perspective, producing highs dating to late July, notes Sean Callow, a Global FX Strategist at Westpac.

Key quotes

“Charts now indicate few major barriers ahead of the 100dma at 0.9414. The 38.2% Fibonacci retracement of the Apr-Aug slide comes in around 0.9510.”

“The RBA now has less to say about the currency’s recent value, in Sep repeating that it is possible that the exchange rate will depreciate further over time, which would help to foster a rebalancing of growth in the economy. Should AUD/USD be say 0.94 and rising by the Oct meeting, they might have more to say.”

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EUR/JPY clings to robust gains

The EUR/JPY technical cross has steadily retraced back higher to threaten recent highs at 132.71 Tuesday during European trading.
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