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See the latest Australian dollar analysis here:
According to Citi, the case for the Australian dollar remains bullish after selling last night triggered by veiled threats in China to blockade rare earth exports:
UDUSD: We believe it is premature to sell AUDUSD on the back of China rare earth export curbs headlines as it appears government officials have only enquired about the impacts of export curbs on the US and European defense sector but we await further details before trimming our longs. Over the medium term we continue to expect AUDUSD to trade up to high 0.79 area, potentially 0.80. We remain long AUDUSD and EURNZD (to hedge a potential dovish surprise from the RBNZ). Flowsovernight have seen AUD cross selling.
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