A$ Lower But Holding Above 67c

Aussie underperformed the G10, except kiwi, on Friday following robust US consumer confidence and a jump in inflation expectations, which weighed on equities. But AUDUSD remained above 67c and is currently trading around 0.6706.

• 0.6700 is providing support for AUDUSD with it only dipping below briefly on Friday. It is worth noting that there is a sizeable option expiry at 0.6700 today, which could influence spot. Initial support is at 0.6685, the April 14 low, and on the upside, resistance is 0.6797, the April 13 high.
• Aussie is up 0.3% against the kiwi to around 1.0804. But is down 0.2% versus the yen to 89.70. AUDEUR is 0.7% lower at 0.6100 and AUDGBP -0.2% to 0.5404.
• Equity markets were mixed on Friday with the S&P down 0.2% but the Eurostoxx up 0.6% and the FTSE +0.4%. VIX fell to 17.1%. WTI oil range traded on Friday to finish 0.6% higher at $82.68/bbl and has started Monday slightly lower at $82.44. LME metal prices rose 0.3% on Friday to be up 2.8% last week. Iron ore is lower at $114.40/t.
• There are no data or RBA events scheduled in Australia this week. The focus of the week is likely to be the RBA’s minutes on Tuesday.