A$ Outperforms On Firmer Commodity Prices

AUD/USD ended Thursday's session moderately higher, closing at 0.6440, a gain 0.30%. The A$ and CAD were the only G10 currencies to rise against the USD for the session. AUD/USD saw a rough 0.6420/0.6460 range post the Asia close. We currently track at 0.6435 in the first part of Friday trade.

• Broader USD indices climbed on Thursday (BBDXY +0.27%), as EUR/USD slumped post a dovish ECB rate. The EUR lost nearly 0.80%, leaving AUD/EUR sharply higher (last near 0.6050).
• The USD also benefited from a firmer yield backdrop, as US retail sales and PPI printed firmer than expected (2yr back above 5.0%).
• Some offset for the AUD came from higher commodity prices. The aggregate Bloomberg index rose 0.67%, as oil prices continued to track higher. Base metals were also firmer though, up 0.90%. Iron ore got close to $122/ton, fresh cyclical highs. China's latest efforts to boost growth via a RRR cut helping sentiment in the space.
• The local data calendar is quiet until next Tuesday when the RBA minutes of the September policy meeting are due.
• In terms of technicals, the 20-day EMA is very close to current levels, while key resistance is at the Aug 30/Sep 1 high of 0.6522. 0.6357, the Sep 6 low, is the bear trigger on the downside.