A$ Hits Multi-Month Low, Back Above 65c On More Dovish Fed Comments

AUDUSD trended down over Wednesday until the Fed’s Jefferson and Harker suggested that the FOMC should pause in June to assess the economic impact of its tightening to date. AUDUSD bounced from the intraday low of 0.6458 just prior to now be around 0.6505. The USD index finished up 0.1%.

• AUDUSD spent most of Wednesday below 0.6500 and the trough of 0.6458 was the lowest level since November 10, thus confirming the downtrend and price sequence of lower lows and lower highs. The key support to watch is 0.6403, the Fibonacci retracement.
• AUDJPY is down 0.6% to 90.57 but AUDNZD is up 0.2% to be back above 1.08 at 1.0807. Aussie is up 0.2% versus the euro to 0.6085, as lower European inflation weighed on the single currency. But AUDGBP fell 0.4% to 0.5228.
• Equity markets were lower with the S&P down 0.6% and the Eurostoxx -1.7%. VIX finished around 18%. WTI fell another 2.8% to $67.55/bbl after sinking 4.3% on Tuesday. Copper rose 0.1% and iron ore held above the $100-mark and is currently $101.85/t.
• Today the final Judo Bank manufacturing PMI for May prints, as well as Q1 private capital expenditure.