AUD/USD, AUD/NZD flows - Comments nudge market towards odds-on Nov RBA hike

With IMM data last week highlighting the market at peak AUD short levels, bias this week has remained towards short-covering, not quite turning into a full squeeze yet but working higher. 

Comments from RBA’s Hauser overnight tending to go with the grain of that by keeping the Nov RBA meeting live - noting that it was ‘pretty clear’ that ‘materially worse’ inflation would come in above RBA forecast and that the RBA was in a world of hard choices regarding dealing with that versus protecting the labour market. 

Comments seen as adding to the risks of an RBA follow up even with the latest soft employment prints, with hike odds nudging just above 50-50 now.

AUD/USD move clear of 0.7 technically looked to confirm a double bottom and looks to .7025 and .7065, Fibonacci retracement levels, with 0.71 above.