June 09, 2022 02:30 GMT
AUD/USD is an underperformer within the G10 FX space, down 0.40% from the NY close. We are close to the Tuesday lows of sub 0.7160.
- Equity sentiment has not helped, with regional markets mostly down today. The headlines around Shanghai districts moving back into lockdown this weekend for mass testing weighing on sentiment. US futures are tracking lower, but losses remain fairly modest so far.
- Yield momentum continues to rollover from Tuesday's high. The AU-US2yr spread is back to -5bps, from a peak of +10bps on Tuesday.
- This is also evident for crosses like AUD/NZD, as we highlighted earlier. NZD/USD is weaker also, but the AUD/NZD cross has slipped to the low 1.1130 region, around 0.20% lower for the session.
- Commodities are mixed. Iron ore is down slightly, but still close to $145/tonne. Copper is also weaker, off a modest 0.6%.
- AUD/JPY has been volatile, but still down on the day to 96.25, after opening just above 96.50.