AUD/USD Backs Away From 0.6780, Jobs Data Eyed Tomorrow ​​

AUD/USD has back away from overnight highs, just shy of 0.6780. We last tracked 0.6765. The currency has modestly outperformed on the day, aided by some AUD/NZD demand. Overall moves have been modest (AUD/USD close to a 40pip range), as the market awaits US CPI data this evening.

• The AUD/NZD got above 1.1060, but we are now back at 1.1045. AU yields are slightly firmer than NZ post the RBNZ, but spreads are comfortably away from recent highs. The AU-NZ 2yr swap is back at -57bps.
• Note NZ plans to tweak its covid related restrictions tomorrow, although the country isn't planning on going back to red settings, which are the harshest.
• Equity sentiment has generally been positive, although concentrated in tech related plays. AUD/JPY sits just under 92.70, +0.20% for the session.
• In the commodity space, iron ore has been steady between $106-$108/tonne. Onshore steel prices in China continue to track lower, likewise for coking coal. Copper couldn’t hold onto earlier gains and is back sub $327 (CMX).
• Tomorrow June employment figures are due. The market looks for +30k on jobs (+60.6k previously). The unemployment rate is expected to edge down to 3.8% from 3.9%, while the participation rate is forecast to remain steady at 66.7%.