A$ Holds Above 0.6900, Westpac Consumer Sentiment On Tap Today

AUD/USD stuck to recent ranges overnight. We revisited the low 0.6900 region, but didn't breach the figure level. Moves above 0.6950 didn't get much traction, open this morning around 0.6940.

• Equity sentiment was better overnight, US equities positing modest gains, the VIX index moving away from the 35% handle, levels above which haven't been sustained this year. We closed just below 33.
• Commodities still a headwind though, iron ore has fallen sharply in the past 3 sessions. Now comfortably below $130/tonne. Copper is also trending weaker. Oil has also dropped sharply since the start of the week (sub $100/bbl for WTI).
• Yield spreads fairly steady at the back end with the US, down from the recent highs for the 2yr spread as the US curve flattened ahead of the CPI print.

Today's data calendar has the Westpac-MI Consumer Sentiment reading for May. With the recent rate rise and equity market weakness, it wouldn’t be a surprise to see a softer result.

On the technical side, support at 0.6968, the Jan 28 low and a bear trigger, has been breached. This opens 0.6876 next, a Fibonacci projection. On the topside, resistance at 0.7030 the May 2 is a potential focus point if we break back above 0.7000.