{AU} AUDUSD is another center of the China storm in FX majorsville and we have been hitting bids and stops over the past 24-48hrs taking out 7000 just this morning. We now think that the market is setting up for a re-test of 6980-50 which we tested in September and if broken opens up 6920 lows during that sell-off. But dont expect it to be a straight shot as there have been RM/local buying interest on each move lower recently and we expect this to continue. Saing that we have offers into 7020-40 now and expect more supply into 7080-7100. I should also point out that AUDUSD has been tracking AUDJPY and this pair continues to crumble taking out the 8320-00 region and now 82.00 support is next if broken there is a lot of air on the chart below and this will have likely weigh on AUDUSD as well.
{GB} GBPUSD continues its down trade with a range of concerns about the UK (brexit, economic disappointment, no hikes in 2016 etc) hanging over the market (although the Brexit seems to be at the fore on the back of recent polls { http://po.st/w4dYND }) . This has taken GBP$ through bids then stops sub 1.4600 and we’re now knocking on the Apr lows into the 1.4550-00 region. Meanwhile we expect to see supply emerge on any rebound into 1.4700-20. EURGBP had been failing to hold above 7400 but today it looks very convincingly higher as we have taken out offers and stops north of 7440-50 and although we have more supply into 7480 we think there is some damage done here now and look for this one to hold dips into 7420-00. There are about 1bn of 1.46s which could held drag this one higher all else equal.