A$ Dips Sub 0.6500, As USD Strength Continues

AUD/USD's downtrend continued post the Asia close, amid further broad based USD strength. We dipped just under 0.6500 before some support emerged late in the NY session. We currently track in the 0.6505/10 region, having lost -0.60% for Thursday's session.

• The pair is back to Nov 2022 lows, with focus on the low 0.6400 region, a Fibonacci retracement level. On the upside, a breach of 0.6818 is required to reinstate a bullish theme. Initial firm resistance is seen at 0.6691, the 50-day EMA.
• Broad USD strength continued, the DXY back above 104.20, +0.30%, as US yields continued to rise. The 2yr back above 4.50%, to fresh highs since the first half of March. Better data around US GDP and initial jobless claims helped, while Biden/McCarthy suggested a debt deal could be done.
• Aggregate commodity indices were mixed, the headline lower (-1.28%), as oil pulled back but the base metals index rose (+0.79%). Iron ore is still around recent lows though near $95/ton.
• Today we get Apr retail sales, 0.3% is the forecast, the Mar outcome was 0.4%.