AUD: A$ Can't Sustain +0.6400 Levels, Amid Broader USD Gains
Dec-12 21:42
AUD/USD tracked lower post the Asia Pac close on Thursday. From highs of 0.6429 we track near 0.6365/70 in early Friday dealings. This leaves us down slightly for Thursday's session, although an outperformer against the rest of the G10. Broader USD sentiment was positive, the USD BBDXY index climbing nearly 0.30%, to be back above 1288.4.
- CHF was the weakest G10 performer down 0.90%, post the SNB's 50bps cut. US yields were higher across the curve, although so too were EU yields, with headlines suggesting the central bank may not be as dovish into 2025. The ECB cut rates as expected.
- The US PPI and initial jobless claims were both higher than expected. US equity markets were lower, the SPX off a little over 0.50%. Real US yields rose back to 2.0% for the 10yr.
- This likely help trim A$ gains, with AUD/JPY back to 97.15/20, after reaching highs above 98.05, which came after the stronger than expected jobs data earlier on Thursday.
- Commodity indices were weaker, the headline BBG index down 0.98%, the metals index off 0.16%. Iron ore is back towards $104.50/ton, although remains within recent ranges. There was some focus on China headlines post the economic working group meeting, but no fresh near term stimulus details.
- Today the data calendar is empty, with RBA Assistant Governor Hunter to give a speech around lunchtime (AEDT).
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ASIA: Coming Up In The Asian Session On Wednesday
Nov-12 21:15
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AUD: Risk Appetite Weighs On A$, Wages Data Coming Up
Nov-12 21:08
The US dollar continued to climb driven by higher yields and softer equities with the USD BBDXY index up another 0.5% to be 2.1% higher since November 5. Weaker risk appetite weighed on Aussie and it underperformed. AUDUSD is down 0.6% to 0.6539 but recovered from the low of 0.6518 as the S&P picked up.
- AUDUSD remained above support at 0.6513, November 6 low and bear trigger, but the bear cycle has been reinforced by this week’s sell off. Initial resistance is at 0.6676, 50-day EMA.
- GBP underperformed the G10 leaving AUDGBP up 0.4% to 0.5128, close to the intraday high. The euro was one of the better performers though and so AUDEUR is down 0.3% to 0.6153 after falling to 0.6144.
- The yen continued to underperform and so AUDJPY is little changed at 101.08. AUDNZD is flat at 1.1026 after a high of 1.1031.
- Equities were weaker with the S&P down 0.3% and Euro stoxx -2.3%. Oil is flat with WTI at $68.04/bbl. Copper fell 1.9% and iron ore is around $100.50/t.
- Today Q3 WPI prints and is expected to rise 0.9% q/q bringing the annual rate down to 3.6% from 4.1% in Q2.
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