AUD/USD Back Sub 0.6900, Some Outperformance Versus EU Crosses

AUD/USD was on the back foot post the Asia close, dipping sub 0.6900, weighed by broader USD strength (DXY back above 105.00). We found some support ahead of 0.6860, last tracking this morning closer to 0.6880.

• We breached the June 23rd low (0.6869) overnight but remained above the 14 June low around 0.6850. Beyond that is the May low of 0.6830.
• Still, the A$ wasn't the worst performer in the G10 FX space over the past 24 hours. AUD/EUR dips remain supported, after hitting a low of 0.6530 we now track close to 0.6590. AUD/JPY is around 94.00, similar levels to this time yesterday.
• Nominal yields were on the back foot in the core markets, led by the EU after weaker than expected German CPI prints.
• US nominal yields dipped, the AU-US 2yr differential around -32bps.
• However, US real yields continued to push higher, the 2yr up 7bps, the 10yr sit back close to +70bps. This aided broader USD sentiment.
• Equities were close to flat in the US. Commodities, outside of the oil dip, stuck to recent ranges for the most part.
• On the data front, May job vacancies print today (last was 6.9%). Private sector credit is also out (0.6% expected for MoM, 8.6% for YoY).