A$ Bounces Off 50-day EMA, Nov CPI In Focus Locally This Week

AUD/USD saw over a 100pip range post the US NFP print on Friday, from lows around 0.6640 we rebounded back close to 0.6750. In early Monday trade we track in the 0.6710/15 region, within recent ranges. The A$ was the third worst performer in the G10 space last week, losing 1.45%, only outperforming SEK and JPY.

• Technically for the AUD, support held on Friday on the 50-day EMA (0.6640). The 20-day sits slightly above current spot levels, near 0.6730.
• The USD largely held its weekly gain, despite volatility through the payrolls print, as better headline results were offset by revisions and also a weaker ISM services print.
• US yields were volatile, but the 10yr still finished above 4.00%, the 2yr ended flat at 4.38%. Equity sentiment was a touch better in US markets, while commodity indices were marginally higher for the Bloomberg aggregate index (+0.30%), but flat for metals.
• Iron ore remains off recent highs, last near $137.65/ton.
• The data calendar has FX reserves on tap today, with retail sales out tomorrow. Nov monthly CPI will be the main focus on Wed this week.