A$ Jumps In Early Trade In Line With Yields

AUDUSD has jumped in early trading to around 0.6923 on higher Aussie yields after reaching a high of 0.6960 on Friday. Aussie was a mid-range G10 performer, outperforming the kiwi and most of Europe but underperforming CAD and the yen. The USD DXY rose 0.35% after Michigan consumer sentiment for February was better-than expected.

• AUDUSD is in an uptrend and recent moves are corrective. A break through key resistance and bull trigger at 0.7158, the February 2 high, would see the uptrend resume. Initial support is at 0.6856, the February 6 low.
• AUDNZD is down 0.1% to around 1.0959. AUDJPY is at 90.90 from 90.74. AUDEUR is 0.6477 and AUDGBP 0.5736.
• Equity markets were mixed on Friday with the Eurostoxx down 1.2% but the S&P 500 up 0.2%. VIX was down to 20.5%. WTI oil prices rose 2.2% to $79.76/bbl after Russia said it would cut output by 500kbd. LME metal prices were down 0.7% on the week after falling 2.1% on Friday. Iron ore is around $124/t.
• There are no events scheduled in Australia today. The focus of the week is likely to be RBA Governor Lowe’s parliamentary appearances on February 15 and 17 and in terms of data the employment report on February 16.