A$ To Fresh Multi-Week highs

The A$ is starting the day around 0.6935, fresh highs back to late June. The currency saw a flurry of support in late NY trading. The post-Asia close low yesterday was just under 0.6860, so it's a decent turnaround from that standpoint.

• Whilst the AUD is following broader USD sentiment, it is still the best performing G10 currency over the past 24 hours, albeit by a slim margin (+0.67%, with JPY next best at +0.62%). AUD/EUR is higher but was very volatile post the Asia close, as the ECB 50bps hike surprised the market, but EUR gains weren't sustained.
• The next topside target for AUD/USD is the 50-day EMA, which comes in at 0.6964. Beyond that is the 50-day MA at 0.6974. On the downside note the levels 0.6786/6682, which are lows from July 18 / 14, but we are some distance away at this stage.
• Cross asset signals were positive from an equity standpoint, with the US VIX index continuing to track lower (closing at 23.11%), even with disappointing US data. The early trend in US futures is weaker though on disappointing earnings.
• US yields fell sharply, as the Philly Fed survey sank. There should be some catch up from AU yields today, but this week's trend improvement in the AU-US differential should remain intact.
• Commodities were less supportive, the aggregate Bloomberg index down 1.45%, base metals off by just over 0.5%. Iron ore stabilized somewhat though, edging back towards $99/tonne.
• On the data front, today holds preliminary PMI prints for July, which are unlikely to move market sentiment.