May 19, 2022 22:11 GMT
AUD was on the front foot for much of the post-Asia close, albeit in a wide range, a low of around 0.6960 to a high just above 0.7070. We open this morning around 0.7050. The A$ outperformed most other G10 currencies, except for NOK, CHF and SEK.
- It was a volatile session in terms of cross asset signals, particularly for equities. US stocks finished lower in a see-sawing session, although the VIX still ended back sub 30%.
- Commodities rose, Brent crude back above $111/bbl, while base metals surged +3.50%, copper up 2.50%. Gold also rallied amid broad USD weakness. Iron is back to a $127/tonne handle
- US yields were lower, as US data disappointed. AU-US yield spreads have moved away from lows for the week.
- There is no domestic data released today. The focus domestically will be on the last day of the Federal election campaign, ahead of tomorrow's vote.
- This week's opinion polls have shown Labor is still leading over the incumbent Liberal/National coalition, but the gap has certainly narrowed compared to a few weeks ago.