AUD/USD Back To Session Lows

AUD/USD is drifting back towards the session lows, close to 0.6970. The positive impetus from the earlier NAB survey result hasn't had great follow through. As we noted earlier though, ranges remain very tight, with the market waiting for key offshore event risks later in the week (i.e. US CPI). The range for the session has been around 0.6970/0.6995. A$ performance on crosses has also slipped as the afternoon session progressed. AUD/JPY is back to 94.10 with 94.40 capping the upside today on a number of occasions. AUD/NZD is back sub 1.1110, with gains above 1.1120 running out of steam.

• Cross asset signals have been mixed. Asia Pac equities are mixed, while US equity futures are holding modestly positive gains (+0.20%).
• The AU-US 2yr spread has nudged back down to -53bps, although remains off session lows around -55bps.
• Commodities have generally been a headwind for the A$. Iron ore is back down through $109.50/tonne (-2%). This is in line with lower onshore steel prices in China. Coal prices are firmer though.
• The domestic data calendar is empty tomorrow in Australia.