Aussie had a relatively quiet day, buoyed by a better than expected Chinese Trade Surplus for May over the weekend (despite much of the improvement coming from weaker Imports). Australian desks were lightly manned due to the Queen’s Birthday long weekend holiday, with the AUD sticking to a tight $0.9328 to $0.9357 range, and now sits at $0.9353, up 20bps. Morgan Stanley has upgraded it’s AUD/USD view, with parity seen by year end, due to offshore demand for AAA rated debt. They also see this despite a weakening terms-of-trade, given “a once-in-a-generation increase in export volumes”. Stops are noted just above $0.9360 to $0.9375, with heavier selling above at$0.9390/0.9400. Buyers below at $0.9290/0.9300 and more at $0.9255/65 with largestops below at $0.9240. Traders will be watching for the RBA Governor Stevens’ speech overnight in San Francisco, with the comments published at 1700 Sydney time (0700 GMT).
