Risk Aversion Crimps A$ Rebound

AUD/USD ended last week just under 0.6930, and we are a little weaker in early trade today, last tracking 0.6920. Dips sub 0.6900 are still supported, although the currency couldn't sustain gains above 0.6970 through the NY session. Risk-off took hold and AUD/JPY fell noticeably. This pair dipped nearly 1 big figure back to 94.00, we open this morning under 94.30.

• US equities faltered at the end of last week, while the VIX index held steady around the 23% level. Misses on PMI prints across the US and EU fuelled global recession fears. Yields were weaker across the board in the core markets, although dips in the EU were larger.
• Commodities were mixed, oil drifted lower, particularly towards the end of the session, but base metals rose. Copper was up 1.55%, while Iron ore sits around $104/tonne. Coal prices pushed higher as well.
• Australian PM Anthony Albanese has called on China to lift trade sanctions against Australia. This follows reports that China was considering lifting a ban on Australian coal exports.
• Australia is also trying to keep out foot and mouth disease from impacting the local agricultural industry. The disease has been found in the popular tourist destination in Bali. Some traces of the disease have already been found in imported products into Australia as well. Note Australia accounts for 4% of global beef production and 13% of world exports.
• The data calendar is quiet today, with things not kicking off until Wednesday when Q2 CPI prints.