A$ Holds Above 0.6300, Outperforms Most Of G10 (ex NZD)

After a volatile day the AUDUSD ended slightly higher and above 0.6300. It is currently trading at 0.6310. Volatility was driven by the USD and the DXY ended the day almost unchanged. G10 performance against the USD was mixed but AUD was one of the better performers behind NZD and SEK.

• AUDNZD fell to a low of 1.1072 yesterday after the higher NZ CPI pushed up RBNZ expectations but it clawed back some of its losses overnight and is now trading slightly above 1.1090. AUD made moderate gains against the GBP and is now at 0.5572 and also versus the JPY (now 94.15).
• AUDUSD continues to range trade but is above its recent lows. Initial support continues to be 0.6170 (October 13 low) and resistance is at 0.6363.
• Equity markets were higher again on better risk appetite and solid US earnings. Eurostoxx rose 0.6% and the S&P500 1.1%. But oil prices fell with WTI down 2.1% and Brent -1% without any clear drivers for the move. Copper was also weaker down 1.5%. Iron ore was stable at $92.50 after falling earlier in the week.
• Only the Westpac Leading Index for September prints in Australia today. The focus will be on tomorrow’s labour market data. Later today UK September CPI is released.