A$ Off Highs But Commodities Supportive

AUD/USD's rally ran out of momentum above 0.6980. Note the 50-day MA comes in at 0.6972, so this may act as a near term inflection point. Dips in AUD/USD still look supported though, with the pair last trading just above 0.6960.

• The A$ has unwound earlier outperformance on some crosses. AUD/NZD got to 1.1130, now back at 1.1115/20. AUD/JPY got to 95.25, but remains above the figure level (95.05 last).
• Besides lower US equity futures, the regional Asia equity lead has been positive for the A$, particularly in China. The property sub-index continues to recover, up a further 3.55%, following yesterday's 1.29% rise. China builders have met with financial companies, in the latest step to aid the China housing sector.
• There was positive spill over to iron ore, +3%, and back close to $110/tonne, while copper is up 2% on a CMX basis (to $342). Steel prices in China are around flat though.
• AU yields have been mixed, lower at the back end, but 2yr has edged higher (+3bps). The AU-US spread is up a little on day to -30bps, up from yesterday's lows of -35bps.
• Tomorrow's AU Q2 CPI print is in focus (see this link for more details).