Chinese authorities urgency to prop up the stock market should support AUD

<p>Comments on the Australian dollar via Westpac:</p><ul><li>The flurry of announcements from China aimed either directly or indirectly at the stock market helped drive a 2% weekly gain for the CSI 300. </li><li>This was only the second weekly rise since early November but the fact that Chinese authorities are showing urgency should at least shore up A$ support near term, with 0.6500 unlikely to be tested early in the week.</li><li> AUD/USD ranges have been very tight in recent days but Australia’s quarterly CPI and FOMC decision have been reliable sources of volatility. </li><li>We lean slightly towards the USD emerging softer post-FOMC. </li><li>Ahead of these releases, it is hard to see a daily close outside 0.6530 (100dma) and 0.6621 (last week’s high)</li></ul><p>—-</p><p>Note, </p><ul><li>Australia's quarterly inflation reading will be published on January 31 at 11.30 am Sydney time ( 0030 GMT, 1930 US Eastern time)</li><li>The FOMC decision is on January 31 also, at 2pm US Eastern time, 1900 GMT</li></ul><p>China's Shanghai Composite update:</p>

This article was written by Eamonn Sheridan at www.forexlive.com.