AUD testing support ahead of data

The fear factor is back into markets after comments made by Greek PM Tsipras over the weekend.

Source: Bloomberg

At the same time we have US rates lift-off priced in for September, given strength in the jobs market. Regardless, the AUD has remained resilient and managed to remain steady against the greenback. AUD/USD will be in focus today with more local and China releases set to hit the wires. China has been a big source of concern for the risk space after the trade balance numbers from the weekend. The AUD has remained relatively unphased and has been in neutral territory around the $0.7800 mark for a while now. Locally, we have NAB business confidence and conditions due out at 11.30 along with quarterly house price index data. Out of China we have CPI at 12.30 which is expected to have cooled to about 1.1% and PPI is also due out at the same time. Cooling CPI will continue to drive expectations of further China easing. Key data for the local currency will be on Thursday when we receive January jobs numbers. Glenn Stevens then testifies before the house of reps on Friday. Price action wise the key for momentum plays will be a close below $0.7800. This could trigger further near term losses.


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