A$ Rebounds On Improved Equity Sentiment/Surging Metal Prices

AUD/USD rebounded post the Asia close on Thursday. From sub 0.6380 we got above 0.6430 late in NY trade. We sit just below Thursday session highs in early dealings Friday. The A$ rallied 1.16% for the session, amid broad based USD losses (BBDXY down 0.42%), with only SEK outperforming in the G10 space.

• The 20-day EMA is nearby to current spot levels (around 0.6430). Key resistance is seen at 0.6522, late August/early September highs. Recent lows rest near 0.6330.
• Equity sentiment was better for EU and US markets. The SPX up 0.59%, while the VIX moved away from recent highs, back towards the low 17% region.
• Risk appetite was aided by lower US yields, with the front end leading the move lower (2yr back to 5.06%). Lower Q2 GDP price revisions and consumption growth appeared to weigh on yields. A pull back in oil prices also helped.
• The aggregate Bloomberg commodity index was still slightly higher on Thursday, although the metals index surged 2.28%. Iron ore is back to $119.50/ton, while copper rose near 2%.
• On the data front today we have August private sector credit figures due. The market expects a 0.3% m/m rise, same as July. Most focus is likely to rest on next Tuesday's RBA meeting, although the market expects a steady hand at 4.10%.