A$ Outperforms Broad USD Weakness

The A$ is the best performer within the G10 FX space so far today, amid broad USD weakness. AUD/USD is finding resistance ahead of 0.6950, but is still nearly +0.50% on NY closing levels (last at 0.6940). We are through the overnight highs, while just above 0.6960 from Tuesday's session could be the next focus point if we see renewed upside momentum.

• Regional equities, outside of HK, are mostly higher, which is a positive as is the +0.30% gain for US equity futures.
• Commodities are mostly tracking higher across oil and gold. Iron ore is back above $105/tonne, while copper is steady ($365), following the overnight drop.
• Onshore steel prices in China are also pushing higher. The property sub-index for the Shanghai composite is up 1.38%, nearly offsetting yesterday's fall. Fresh talk of additional stimulus measures is likely to be helping China related asset sentiment today.
• In the bond space, AU yields are still trending higher. The AU-US 2yr spread is back to -32bps, although we are away from earlier highs in the week (-20-25bps).
• AUD/NZD is grinding higher, last at 1.1185/90. The move up is still outperforming relative swap/yield spread trends.