A$ Continues Underperforming, AUDNZD Breaks Below 1.07

AUDUSD fell sharply during the European morning but found support around 65c. It then recovered from a low of 0.6508 driven by softer US labour indicators, lower US Treasury yields but stronger US equities to be up slightly on the day. It is currently around 0.6573. Better ISM data didn’t boost the USD and the index fell 0.2%.

• AUDUSD broke below key support at 0.6526 and attention is now on 0.6500, a Fibonacci retracement. Short-term gains are seen as corrective. Initial support is at 0.6508, February 1 low, and initial resistance is 0.6623, 50-day EMA.
• Aussie again underperformed against the G10 except SEK. AUDNZD fell below 1.07 to a low of 1.0694 during the European afternoon but has recovered moderately to 1.0702 to be down 0.3%. AUDJPY is 0.3% lower at 96.25 after reaching a low of 95.50. AUDEUR fell 0.4% to 0.6046 and AUDGBP -0.4% to 0.5157.
• Equity markets were mixed with the Euro stoxx down 0.2% but the S&P rising 1.25%. Oil prices fell sharply with Brent down 2% to $78.95/bbl. Copper is 1.5% lower and iron ore is down to around $130/t.
• December housing finance and Q4 PPI data are out today but the focus will be on US payrolls later.