Comments on the Australian dollar via Westpac:
- The flurry of announcements from China aimed either directly or indirectly at the stock market helped drive a 2% weekly gain for the CSI 300.
- This was only the second weekly rise since early November but the fact that Chinese authorities are showing urgency should at least shore up A$ support near term, with 0.6500 unlikely to be tested early in the week.
- AUD/USD ranges have been very tight in recent days but Australia’s quarterly CPI and FOMC decision have been reliable sources of volatility.
- We lean slightly towards the USD emerging softer post-FOMC.
- Ahead of these releases, it is hard to see a daily close outside 0.6530 (100dma) and 0.6621 (last week’s high)
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Note,
- Australia's quarterly inflation reading will be published on January 31 at 11.30 am Sydney time ( 0030 GMT, 1930 US Eastern time)
- The FOMC decision is on January 31 also, at 2pm US Eastern time, 1900 GMT
China's Shanghai Composite update:
