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A$ Falters As Weak Data Out Of China/U.S. Weighs On Commodities, RBA Minutes Eyed

AUD

The Aussie dollar lost altitude Monday as weak economic data out of China and the U.S. revived concerns about global growth prospects, applying pressure to commodity-tied FX space.

  • Offshore yuan went offered as Chinese activity indicators undershot forecasts, while the PBOC unexpectedly cut interest rates applied to its 1-Year MLF & 7-Day Reverse Repo operations, which spilled over into the Antipodeans, to a degree.
  • An unexpectedly big (second-largest on record) drop in U.S. Empire State gauge of business activity helped keep recessionary concerns alive, with AUD/USD cementing earlier losses as a result.
  • The commodity complex was weaker, with the aggregate Bloomberg Commodity Index down ~1.5% on the day. Base metals were softer across the board, so were iron ore, oil and gold.
  • Better equity sentiment failed to lend any substantial support to the Aussie, even as benchmark indices in Europe and the U.S. eked out some gains. The VIX index gave away most of its initial advance.
  • At typing, AUD/USD trades flat at $0.7022. The next key support is provided by $0.6870, which marks the low print of Aug 5. Bulls look for gains past Aug 11 high/76.4% retracement of the Jun 3 - Jul 14 downleg at $0.7137/41.
  • The minutes from the RBA's most recent monetary policy meeting will hit the wires later today, as will CBA Household Spending.
  • Looking further afield, wage price data is due Wednesday, with jobs market report coming up Thursday.
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The Aussie dollar lost altitude Monday as weak economic data out of China and the U.S. revived concerns about global growth prospects, applying pressure to commodity-tied FX space.

  • Offshore yuan went offered as Chinese activity indicators undershot forecasts, while the PBOC unexpectedly cut interest rates applied to its 1-Year MLF & 7-Day Reverse Repo operations, which spilled over into the Antipodeans, to a degree.
  • An unexpectedly big (second-largest on record) drop in U.S. Empire State gauge of business activity helped keep recessionary concerns alive, with AUD/USD cementing earlier losses as a result.
  • The commodity complex was weaker, with the aggregate Bloomberg Commodity Index down ~1.5% on the day. Base metals were softer across the board, so were iron ore, oil and gold.
  • Better equity sentiment failed to lend any substantial support to the Aussie, even as benchmark indices in Europe and the U.S. eked out some gains. The VIX index gave away most of its initial advance.
  • At typing, AUD/USD trades flat at $0.7022. The next key support is provided by $0.6870, which marks the low print of Aug 5. Bulls look for gains past Aug 11 high/76.4% retracement of the Jun 3 - Jul 14 downleg at $0.7137/41.
  • The minutes from the RBA's most recent monetary policy meeting will hit the wires later today, as will CBA Household Spending.
  • Looking further afield, wage price data is due Wednesday, with jobs market report coming up Thursday.