A$ Recovers Back To 0.6370, RBA SoMP & Q3 Real Retail Sales On Tap Tomorrow
AUD/USD has recovered from earlier lows, last around 0.6365/70, +0.25% on NY closing levels. We dipped to 0.6325 before rebounding to just above 0.6370. Note the 20-day EMA comes in at 0.6393 on the topside. A modest recovery in US equity futures has aided the A$ rebound, while the USD is softer against all the majors as well.
- The A$ is only lagging the JPY at this stage in terms of G10 performance, reversing the trend from the start of the session. AUD/NZD has stabilized somewhat, last at 1.0915/20, up from earlier lows near 1.0890.
- Commodities have been mixed, iron ore dips supported, albeit within tight ranges. The metal last traded just above $81/tonne, unfazed by fresh weakness in China property stocks.
- Tomorrow the focus will rest on the RBA SoMP, although some forecasts were already outlined in the policy statement from earlier in the week. Also due is Q3 real retail sales, the market looks for a +0.4% outcome (+1.4% in Q2), although there is a fair degree of uncertainty regarding the outcome (see this link for more details).