A$ Outperforms On Better Local Data/Higher Equities, RBA Testimony Before Parliament Today

AUD/USD tracks near 0.6610 in early Friday dealings. The A$ gained 0.21% for Thursday's session, which along with GBP, were the only G10 currencies to rise against the USD yesterday. Broader USD sentiment was positive (BBDXY index +0.25%, DXY +0.47%), post stronger US retail sales data. Safe havens underperformed, with yen off 1.3%.

• For AUD/USD, carry over from yesterday's strong jobs growth figures helped relative outperformance trends.
• Thursday highs were at 0.6635, while earlier in the week we got to 0.6643, which are likely upside focus points in the near term. Current spot levels are close to the 50 and 100-day EMAs. Yesterday's low ahead of the jobs print was 0.6571.
• AU-US 3month rate differentials (1yr ahead) are off recent highs, as Thursday's better US retail sales data trimmed market expectations for a 50bps cut at the September Fed meeting. Lower initial jobless claims also contributed to these moves.
• The equity mood was positive though, with the SPX up 1.61% in US trade. EU equities also rallied. AUD/JPY is up to 98.75, around levels that prevailed from the start of the month. We are up nearly 9.5% from August 5 lows near 90.00.
• Bloomberg commodity indices were higher, up 0.7% for the aggregate index, 1.75% for metals. Iron ore is up from recent lows but not yet clear of $95/ton on the topside. Copper prices rose 2.5%.
• Today we have the RBA testimony before parliament, with a host of RBA officials, including Governor Bullock in attendance.