AUD/USD: 0.92502EUR/USD: 1.3185Gold got busy early in the session, breaking up though 1300 and eventually above the important 1320 resistance, taking the Aud along for the ride over the course of the session. Having started the week at the day's lows, the Aud has not really looked back in running up to 0.9270, where sellers have so far capped it, but the daily momentum remains positive and the speculative market is still short, so further gains could be in store.
If 0.9270 can be taken out, look for further gains towards last week's 0.9292 high although there are supposedly plenty of offers in the 0.9270/90 area which would slow the process. Above 0.9300 would see a run to the 26 June high at 0.9344 and then to 0.9368 (23.6% of 1.0582/0.8998).
On the downside, good bids are now seen at 0.9200 and then at rising trend support to 0.9180. I cannot see it down here today, but if wrong then a return towards 0.9100 would be on the cards.
All eyes will be on the CPI tomorrow and I would imagine that the chance of higher reading (exp 2.5% yy) will be balanced out by the potential for a rate cut at next week's RBA meeting, and thus, after today's decent rally, we may take a breather and tread water ahead of tomorrow's data, which will also include the HSBC China Manufacturing Flash PMI. Thus I would expect a range bound session today between 0.9200/0.9300.
