Following a turbulent week, the quiet start around the UK/US bank holiday was likely welcomed as markets took a breather. However, some signs of deterioration unfolded in the form of Bearish Reversal Weeks in USD/JPY and EUR/JPY. The bigger highlight remains the AUD as it approaches its 2012 lows. For the time being, a bearish AUD view is better expressed against the NZD (AUD/NZD completed a large top earlier this year) though a break below 0.9580 in AUD/USD would likely suggest that the USD is gaining a stronger bullish tone once again. In rates space, the 2013 peak for US 10yr yields at 2.09% is also a strong focus this week.
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Barclays