May 12, 2022 22:39 GMT
The AUD remained in a downtrend post the Asia-close. We hit a low of 0.6830 before stabilizing and open this morning around 0.6860.
- A late rebound in US equities helped the A$ recovery from the lows, while the VIX index edged back down through 32%.
- Commodities were mixed but remain a headwind for the currency. Oil held up but base metals fell close to 3%, copper off by 2.55%. Iron ore remained around $125/tonne.
- Yield spreads maintained recent ranges against the USD.
- There is no data on tap today, but RBA Deputy Governor Michele Bullock is on a panel session at the Regulators 2022 (FINSIA) conference in Sydney at 1pm AEST. Monetary Policy is unlikely to be covered.
- The bears remain in control from a technical standpoint. Support is seen at 0.6833 and 0.6805, lows from June 30 and 22 2020 respectively. 0.6784 is the 0.764 Fibonacci projection of the Apr 5 - May 2 - 4 price swing. Initial resistance is at Wednesday's high of 0.7054.