July 20, 2022 22:19 GMT
AUD/USD got just above 0.6930 post the Asia close, fresh highs back to late June, before sliding back underneath 0.6900. We currently sit at 0.6890.
- Cross asset signals were generally positive for the A$, although the USD firmed, due to EUR weakness amid Italian political turmoil. The DXY is back above 107, +0.30% in the past 24 hours. A$ outperformed the EU bloc of currencies.
- AUD/EUR sits at 0.6765, close to multi week highs. AUD/JPY sits at 95.25, albeit down from yesterday's highs of around 95.75.
- Equities were higher, although more so in the US, while the VIX fell back sub 24% and is now sub the 200-day MA for the first time since April.
- Commodities also rose, with the Bloomberg aggregate index up 1.3%, while base metals rose close to 2%. Copper was up just under 1%, but iron ore edged back down through $100.
- Yield spreads continue to firm in AUD's favor. The AU-US 2yr spread is back close to -40bps, up from lows around -60bps a week or so ago. Yield momentum has been buoyed by RBA speak this past week.
- The data calendar is quiet today, with just NAB 2Q business confidence out, along with RBA FX transactions.