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Today marks the final trading day of the month, quarter and half-year. While the major focus remains on the risk mood, which remains rather choppy for the most part, flows are likely to keep things interesting in the day ahead.
The market is keeping more calm for now, with the yen mildly weaker and the aussie a tad firmer. On the latter, AUD/USD is testing key near-term levels again but is seen struggling with more near-term resistance sitting closer at 0.6890-00 as well.
The focus today is likely to come down to identifying what the month-end and quarter-end portfolio rebalancing flows have to offer to investors. ING highlighted that this time around, the flows may be more dollar supportive but we'll see.
Things can get a bit dicey on days like these and the volatility may not suit everyone's liking. However, as we move past today, the trading week is also a bit cut short with the US observing a long weekend for the 4th of July holiday.
That means we'll be seeing a rather rare Thursday non-farm payrolls report. So, expect the market focus to quickly shift towards that from tomorrow onwards.
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