USD: BBDXY - Accelerates Above 1200, Can The USD Build On This ?

• CHINA PBOC CONDUCTS CNY242 BLN VIA 7-DAY REVERSE REPO MON

The US stocks market continues to be very well supported on any dip. A market that was caught very short all the way up and has now been forced back in is very reticent to attempt to sell it again. Risk would need to break lower to see the AUD extend lower in the crosses.

• EUR/AUD - Friday night range 1.7737 - 1.7840, Asia is currently trading around 1.7790. The pair continues to comfortably hold above 1.7700. Support seen back towards 1.76/77 and while this holds focus should be on the 1.8000 area again.
• GBP/AUD - Friday night range 2.0852 - 2.0935, Asia is trading around 2.0900. Decent demand around 2.0850 on Friday night. A break above 2.1050 is needed to see the move higher once more gain momentum.
• AUD/JPY - Friday night range 92.91 - 93.87, Asia is trading around 93.50. The price has topped out again towards 94.00 this morning after a big bounce off 92.50 overnight. A break back below 91.50/92.00 is needed to see the move lower regain momentum and the focus turn back to the year's lows again.

• AUD/NZD -  Friday night range 1.0763 - 1.0792, the cross is dealing in Asia around 1.0770. A top looks in place now just above 1.0900, the cross topped out last week towards the 1.0800/25 sell area, the first target looks to be around 1.0650.

  Fig 1: AUD/JPY spot Hourly Chart

  

  Source: MNI - Market News/Bloomberg Finance L.P

• The PBOC issued CNY242bn of 7-day reverse repo at 1.4% during this morning's operations.
• Today's maturities CNY173.8 bn
• Net liquidity injection CNY68.2 bn.
• The PBOC monitors and maintains liquidity in the interbank system through the issuance of reverse repo.
• The CFETS Pledged Repo Deposit Institutions 7 Day Weighted is at 1.41%, from prior close of 1.50%.
• The China overnight interbank repo rate is at 1.37%, from the prior close of 1.45%.
• The China 7-day interbank repo rate is at 1.50%, from the prior close of 1.50%.