A$ Off Monday’s Highs As USD Stabilises

After reaching a multi-month high of 0.7019, the AUDUSD moderated on the back of a stronger USD and is now trading just below 70c again at 0.6955. Aussie was a mid-G10 performer, underperforming EUR, CAD and NZD.

• AUDUSD’s break through 0.6893 confirmed the resumption of the uptrend, which started in October. Moving average studies remain in a bull mode position. The next level to watch is 0.7059, whereas key support is at 0.6688.
• Aussie is down 0.3% against kiwi to 1.0897 and down 0.2% against the euro to 0.6425. AUDJPY is slightly higher at around 89.35.
• Iron ore has sold off after news on Monday that China is going to clamp down on domestic purchasers. It is currently trading around $119 after a high of $126.40 last Friday.
• Improved risk sentiment boosted equity markets further with the S&P 500 up 0.4% and the Eurostoxx +0.15%. WTI oil prices fell 1.3% to $78.85/bbl but remain close to Friday’s high. Copper prices fell 1.8% and unwound the gains of late last week.
• Today Westpac’s consumer sentiment survey for January prints. Later in the session a swathe of Chinese data is released, including IP, retail sales and Q4 GDP.