A$ Falters On Weaker Equities/USD Rebound

AUD/USD couldn't sustain gains above 0.6500 overnight. We currently track around the 0.6455 level, above overnight lows near 0.6425, but still off by 0.65% over the past 24 hours. The A$ has outperformed some G10 currencies, most notably EUR, but underperformed against the JPY and NZD. The USD was broadly firmer overnight. Today's data calendar has just Q3 PPI on tap.

• Equity sentiment was generally softer, but weakened noticeably around the NY close with the market disappointed by earnings results from Amazon and Apple. This could weigh on Asia Pac sentiment today. AUD/JPY is back to 93.35/40, away from recent highs near 95.50.
• Core yields continued to ease in major global markets overnight, as potential for a slower pace of rate hikes drives sentiment, which weighed on EUR/USD.
• Commodity indices were down for aggregate and base metals, while iron ore slumped to the low $80/tonne, fresh lows back to late 2021. As we noted yesterday, this isn't correlating strongly with A$ moves at the moment though.
• There is no consensus for today's PPI outcome, in Q2 the q/q pace was 1.4%, while in y/y terms we rose 5.6%.
• AUD/NZD is back to 1.1065/70, well below the earlier weekly high around 1.1175.