A$ Outperforms As Risk Appetite Improves

Aussie trended higher against the greenback through Friday breaking back above 65c to be up 0.5% to 0.6524. It has started the week lower at 0.6517. It was one of the better G10 performers along with other commodity currencies NOK and NZD as better risk appetite supported risk sensitive FX. The USD index was moderately lower.

• The move to new cycle lows last week confirmed a resumption of the downtrend and has opened up 0.6453, November 17 low. 0.6625 is key short-term resistance.
• AUDNZD broke below 1.06 during Friday’s European morning to a low of 1.0586. The pair is down 0.3% to 1.0614. AUDJPY is up 0.5% to 97.39 as higher US yields weighed on the yen. AUDEUR is 0.4% higher at 0.6044 and AUDGBP +0.2% to 0.5158.
• Equity markets were mixed with the Euro stoxx up 0.1% and the S&P +0.6% but the FTSE down 0.3%. Oil prices extended Thursday’s gains with Brent up another 0.3% to $81.86/bbl. LME metal prices fell 0.3% to be down 3% on the week. Iron ore is around $1247/t.
• There are no data or events in Australia today with the focus on Thursday’s labour market report.