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Cable looks supported

Both Manufacturing PMI and Construction PMI came in stronger than expected last week. Today's release of Services PMI will show whether this pullback in business activity and sentiment is more broad based.
The pair broke above 50 DMA last week, for the first time after Brexit. It is currently trading at the upper end of its post-Brexit consolidation pattern. A hold above 1.3350 would put 1.35 into focus. 1.3275 is the initial support.
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Kiwi breaks below 50 DMA

Last week's RBA rate cut hasn't only impacted Aussie but has also contributed to the reversal in Kiwi. Overnight talk of additional macroprudential measures by the RBNZ to stem house price rises has been seen as laying ground for further rate cuts.
The pair fell more than 300 pips since last Tuesday, breaking below 50 DMA in the process. Some demand will definitely come in ahead of 100 DMA and 200 DMA but it may take a decline to August 2015 - January 2016 trendline before sentiment turns again.
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US inflation positive

US CPI report came out solid and it appears sentiment has reversed (at least short term). However, immediately after knee-jerk reaction to the news, there was a short squeeze in which Euro made new high and briefly traded above 1.10. Particularly weak is Cable as UK CPI missed expectations earlier in the day.
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