A$ Higher On Firmer Equities, But Iron Ore Yet To Join The Risk Rally

AUD/USD dips post the China quarantine headline have been supported. The pair is back above 0.6260 currently. The currency initially spiked towards 0.6270 on the headlines before easing back to 0.6240. Still, we are yet to test earlier session highs (near 0.6280), while beyond that lies the 0.6320/40 region, which has capped A$ gains for the past week or so.

• Commodity prices have seen some positive traction, but more so in the copper (CMX around +0.50%) and oil space (Brent +0.80%), rather than iron ore. We are only just shy of recent lows near $90/tonne. We may need to see greater traction on this front to propel the AUD higher on this China news.
• Still, the equity backdrop has improved, with China bourses higher post the lunch break, CSI is up +0.50%, unwinding earlier losses of around 0.70%. US futures are also higher, with Eminis back in positive territory.