A$ Rallies As Risk Appetite Improves, Watch Jobs Data

Commodity currencies outperformed on Wednesday supported by a rally in commodities and equities. The AUDUSD has been range trading but rose 0.1% and has started the APAC session around 0.6662. The USD index is 0.3% higher.

• Aussie has struggled since it retreated from 0.6818, the May 10 high. Key support and bear trigger is at 0.6565, the March 10 low. Clearance of this level would highlight a range breakout. 0.6818 needs to be breached for the bullish theme to resume.
• Aussie is down 0.2% against the kiwi to 1.0663. It has been below 1.07 since Tuesday. AUDJPY is a percent higher at 91.66 and close to last week’s highs. AUDEUR is up 0.3% to 0.6144 and AUDGBP stable around 0.5333.
• Equity markets were generally higher on Wednesday with the S&P up 1.2%, the Eurostoxx +0.2% but the FTSE down 0.4%. Oil prices rallied with WTI up 2.6% and is now trading around $72.70/bbl. Copper is 2.2% higher and iron ore has risen to around $108/t.
• Today the April employment data print (see Jobs Expected To Rise Again Keeping Unemployment Rate Stable) and a 25k rise is expected. The Melbourne Institute’s consumer inflation expectations for May are also due.