Outperforms On Crosses, Q1 GDP in Focus Today

AUD/USD was weaker post the Asia close, dragged down by broad USD strength. We outperformed on a cross basis though. We open this morning around 0.7175.

• Equity sentiment was softer in the US and EU for month end, while the US VIX index faded from an earlier spike above 28% to close in the low 26% region.
• This didn't derail AUD/JPY though, with the pair pushing back above the 50-day MA at 91.92, we open this morning at 92.36. Yen underperformed within G10 FX on the global sell-off in fixed income.
• Commodities lost ground, with iron ore back to the low $130/tonne region. Copper also fell modestly, while oil moved away from highs late in the US session.
• The main data focus will be the Q1 GDP print. Recall yesterday's Q1 partials firmed some sell-side analysts’ expectations. The consensus sits at 0.7% for QoQ, 3.0% for YoY. There could also be focus on wages/earnings information from the GDP report.
• House price data already printed earlier today, dipping 0.3% for May, the first monthly decline since September 2020.
• From a technical standpoint the current bull theme persists. The resumption of gains put prices north of the 50-day EMA, at 0.7170 and has exposed resistance at 0.7266, the May 4/5 and a bull trigger. Support just below 0.7100 is evident at the 20-day EMA.