A$ Back To Mid-2020 Lows, Underperforms Against Safe Havens ​

AUD/USD spent much of the overnight session sub $0.7000, with the market happy to fade moves back above this level. We open this morning around $0.6950, levels last seen in mid-2020.

• It was another classic risk off session overnight, equities weaker across the board, while the VIX index closed near 35%.
• AUD/JPY slumped close to 2% and tracks just above the 50-DMA this morning (currently Y90.65, 50-DMA at Y90.58).
• Commodities also suffered broad based losses, with the Bloomberg spot index down by 4.3%. This followed after Iron ore broke sub $130/tonne in the Asian time zone yesterday.
• Yield differentials moved in favor of the A$, but that largely reflected a flight to safety in terms of USTs.
• Today's busy data calendar includes CBA household spending indicator for April, the ANZ weekly consumer confidence, NAB business confidence for April and Q1 retail sales, which is a useful indicator for Q1 GDP, but quite backward looking at this stage (the market consensus is a +1% rise, after last quarter's 8.2% surge).
• From a technical standpoint, MA studies are in a bear mode at the moment. Support at $0.6921 (the July 14 2020 low) could be eyed, then $0.6876 below that. On the topside, we couldn't get above $0.7020/0.7030 during yesterday's session, so this could be a focus point if seen today.