USD Trading Outlook (25-07-2013)

The AUD has slipped lower against all of the other major currencies after poor Chinese PMI
data yesterday showed that their manufacturing has stopped growing again. This is of course
seen as bad for Australian commodity exports. Precious metals gave up some of their recent
gains as well and this also added to downside pressure on the AUD. Yesterday’s Australian
CPI data has dampened speculation on an August rate cut to some degree, with futures
markets now pricing in roughly a 50% chance.

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