A$ Holding Lower, But Remains Within Tuesday's Range Post Data Misses

AUD/USD has stabilized somewhat post the weaker than expected data prints. We were last near 0.6460, still down 0.30% versus NY closing levels. At the margin we are the worst performer in the G10 space (NZD is also tracking lower last near 0.5955). Post data lows were at 0.6450 for AUD/USD. We remain wedged in between recent ranges, Tuesday's low near 0.6400, against highs close to 0.6490.

• Note there is a A$604mn option expiry at 0.6500 strike later in NY trade, then a further A$602mn at 0.6535, which may influence spot in the near term.
• Most focus on the data front is likely to rest on the CPI miss, printing at 4.9% versus 5.2% expected and 5.4% prior. This is the lowest y/y print since early 2022 (for the monthly series). July building approvals were also sharply weaker than forecast (-8.1% m/m, -0.5% forecast and -7.9% prior).
• AU-US 2yr government bond yield spreads sit above recent lows last near -107bps, versus recent lows in the -115/-120bps region. Even after today's data misses, AU bond yields aren't matching US falls seen from Tuesday's session.