A$ Hits Fresh YTD Lows, Retail Sales On Tap

The AUD was the weakest performer in the G10 space for Wednesday's session. The currency lost 0.69% against the USD, with broader USD gains continuing for the most part (the BBDXY to 1271.6, +0.38%). AUD/USD hit fresh YTD lows near 0.6330 in NY trade, before recovering somewhat. We last tracked 0.6350/55, which is where we closed in NY.

• The A$'s dip just shaded EUR/USD, while fell back to the low 1.0500 region. US yields were firmer across key parts of the curve, the 10yr to 4.61%, +7bps, the 2yr to 5.135%, also +7bps. US real yields also tracked higher, the 10yr to 2.27%.
• Firmer US data (durable goods) and hawkish Fed speak aiding the yield backdrop and underpinning dollar momentum. Equity sentiment was mixed in EU and US markets. Focus in the near term remains on a possible US Government shut down.
• Some spot commodity indices were higher, the aggregate index +0.35%, but metals fell 0.44%, the third straight fall. The energy sub index was +2.37%, as oil prices rose further (NOK and CAD outperformed). Iron ore sits close to $116/ton, up from recent lows near $114/ton.
• On the data front today we have August retail sales. The market expects a 0.3% m/m rise, the prior outcome was +0.5%. Also out is job vacancies.