China Property Support Helps Curb A$ Losses

AUD/USD is back above 0.6900, from the earlier dip to 0.6880. We went through Friday's low, but Thursday's low, just under 0.6860, remains intact. The A$ has generally underperform against the rest of the G10 bloc.

• Cross asset signals have been a headwind for the A$ buy not uniformly so. Equities sentiment has been downbeat for most of the session but losses have been fairly minimal, with US futures only down slightly at this stage (around -0.10%).
• One bright spot has been China property shares, with the sub index up +1.3%. China's plan to set up a fund to help property developers aiding sentiment.
• This has also spilled over to iron ore and steel prices. Iron ore is back above $106/tonne, while steel rebar is nearly 1% higher onshore.
• Copper is still lower though, -0.50% on a CMX basis. Brent crude is also down, -0.64% to $102/bbl.
• Yield spreads drifted a touch higher but appear to be major driver of A$ sentiment today.
• AUD is higher versus NZD, with the AUD/NZD cross holding above 1.1080 for most of the day. Elsewhere the A$ is underperforming. AUD/JPY is off around 0.20% so far today. Dips sub 94.00 have been supported though in the pair.