A$ Rebound Falters, AUD/USD Back To Low 0.6400 Region

AUD/USD more than reversed Wednesday's gain on Thursday, dipping close to 1%. The USD saw broad based gains with the BBDXY rising 0.40%. AUD/USD was weaker for the majority of the post Asia close on Thursday, falling from ~0.6490 to 0.6410/20 by the NY close. We currently track within this region.

• A firmer US yield backdrop, as some Fed speak indicated the need for higher for longer rates, aided the USD. The 2yr yield is back above 5.02%. Equity sentiment was weaker in US trade, the SPX down 1.35%, while the Nasdaq fell ~1.9%.
• Commodity indices were mixed, the aggregate Bloomberg index slightly higher, the base metals index down 0.62% for its first loss this week. Copper was weaker (-1.15% to $379 for CMX), while iron ore eased back to $112.50/ton post the Asia close.
• In terms of technicals, the AUDUSD trend remains bearish and the latest recovery appears to be a correction. Firm resistance is seen at the 20-day EMA - at 0.6518. On the downside, the Aug 17 low of 0.6365 is a bear trigger, a break through this level would open up 0.6285, the Nov 4 2022 low.
• The local data calendar remains empty, with July retail sales on tap next Monday.