A$ Rebound Falters, But Support Evident Sub 0.6400

AUD/USD spent most of the post Asia close on Wednesday tracking lower. By the NY session we got sub 0.6390, before support emerged. The pair closing at 0.6414, a 0.28% loss. We track close to these levels in early trade today. Broader USD trends were mixed, with EUR and GBP firmer, but JPY and NZD joined the A$ in tracking down.

• Despite AUD/USD getting close to 0.6450 in early trade yesterday, the technical backdrop remains bearish. Key resistance is still eyed at 0.6522, the late Aug/early Sep highs. 0.6215, a Fibonacci projection, is still the downside target, which comes after last week's support breach at 0.6331.
• The US 2/10's Tsy curve flattened further on Wednesday, with a firmer front end yield backdrop (2yr back to 4.98%), cited as one USD support point. US equity markets tracked modestly higher (+0.43% SPX)
• In the commodity space, aggregate Bloomberg indices were lower, the headline index -0.42% (amid weaker oil prices), the base metals index -0.32%. Iron ore is back to $112/ton in terms of the active Singapore future, versus earlier highs yesterday near $113.50/ton.
• On the data front today we have consumer inflation expectations on tap for October.