A$ Outperforms But Technical Trend Remains Bearish

Aussie outperformed the G10 as better China credit data drove improved risk sentiment. AUDUSD rose 0.9% with most of the gains being made before the European open but they were held during the rest of Monday. AUDUSD reached a high of 0.6449, resistance, and is currently around 0.6431. The USD index fell 0.5%, which may also have been impacted by profit taking.

• AUDUSD trend condition remains bearish and yesterday’s rally is corrective. The bear trigger is 0.6357, the September 6 low, and a clear break of this level would confirm the resumption of the downtrend. Initial resistance is at 0.6449, the 20-day EMA.
• AUDJPY is flat at around 94.26 after reaching a high of 94.46. AUDNZD is 0.2% higher at 1.0862. AUDEUR rose 0.4% to 0.5982 but is off the intraday high of 0.6007. There were a number of breaks above 0.6000 but they were brief. AUDGBP is up 0.5% to 0.5140.
• Equity markets were stronger with the S&P up 0.7% and the Euro stoxx +0.4%. VIX was steady at 13.8%. Oil prices were flat with Brent at $90.62/bbl. Copper rose 0.8% and the China credit data drove iron ore higher to around $118/t.
• Today September Westpac consumer confidence and NAB August business confidence are on the schedule.