A$ Back To Low 0.6500 Region, RBA Governor & Deputy Governor Before Parliament Today

Like elsewhere, AUD/USD couldn't hold post US CPI gains, the pair topping out ahead of 0.6620. We sunk back to 0.6515 by the NY close, a loss for Thursday's session of 0.20%. The A$ was mid range from a G10 standpoint, although outperformed both JPY and NZD. The BBDXY rose0.15% for Thursday's session.

• The FX technical focus remains skewed to the downside for AUD. We are trading below the 20- and 50-day EMAs - the recent breach of these averages strengthened a bearish theme. The continuation lower opens 0.6458, the May 31 low and a bear trigger. On the topside, 0.6645, the Aug 4 high and 0.6680, the 50-day EMA are resistance points.
• The US yield rise from Thursday is likely to keep yield differentials skewed against the AUD. The 2yr government yield spread threatening to hold sub -100bps.
• The Bloomberg aggregate commodity index eased by 0.46% on Thursday, while the base metal index was close to flat. Iron ore is holding recent ranges, last near $101.40/ton.
• The local data calendar is empty today, but RBA Governor Lowe and his incoming replacement, Deputy Governor Bullock, appear before parliament for the semi-annual testimony. This kicks off 00:30 BST, 09:30am AEST.