A$ Breaks 66c But Starting Session Just Above

The Aussie underperformed the G10 again on Wednesday with the AUDUSD down 0.3% to hold just above 66c at 0.6605. The USD lost ground particularly versus European currencies and the yen and the index is down 0.4%.

• AUDUSD broke through 0.6600 during the European session but then hit the intraday low of 0.6591 during NY trading. The high was 0.6639 before the Q1 CPI was released. Support of 0.6620 was also broken and so the next level to watch is 0.6565, the bear trigger. A breach of this would confirm a resumption of the downtrend that started on February 2. Key resistance is at 0.6806.
• AUDEUR is down 0.9% to 0.5985 and AUDGBP -0.8% to 0.5298. AUDJPY is 0.4% lower to 88.30 and AUDNZD is flat around 1.0800.
• Equities were weaker across the board with the S&P down 0.4% and the Eurostoxx down 0.7%. VIX was steady around 18.8%. WTI oil prices were down sharply by 3.5% to $74.42/bbl. Copper was 0.2% lower while iron ore has rebounded to $105/t.
• Today Q1 trade prices are published with export prices expected to fall 2.6% q/q and import rise 0.5%.