A$ Outperforms Firmer USD Index, House Prices Post 6th Straight Monthly Gain In August

AUD/USD remained within recent ranges post the Asia close on Thursday. Dips back towards 0.6460 were supported, but we couldn't test back above 0.6500. The pair finished the Thursday NY session near 0.6485, which is where we currently track in early trade today. The A$ was 0.14% firmer for the session, outperforming the firmer USD index backdrop (BBDXY +0.31%), but losing some ground against the yen.

• Technically, the 20-day EMA (~0.6490) is very close by to current spot, while the 50-day, at ~0.6570 is seen as a key resistance point. On the downside, support is likely at 0.6365, the Aug 17 low, which is also the bear trigger.
• In the cross asset space, US yields drifted a little lower (US 2yr to 4.86%), with core yields more broadly falling. Equity sentiment was mostly weaker, but losses weren't large.
• The Bloomberg aggregate commodity index was close to flat (despite Brent +1.16%), while the base metals index edged down 0.29%. Iron ore is around $113/ton, a tough off recent highs.
• Today's data calendar has the final Judo Bank manufacturing PMI read for August out (prior was 49.4). July home loan data also prints (market consensus flat, versus -1.0% in June).
• Data released in the offshore session from core logic, showed house prices +1.0%m/m in August, marking 6 straight months of gains.