May 10, 2022 02:23 GMT
AUD/USD is up from the lows, basing ahead of 0.6910, to be back close to flat on the day. AUD/JPY has rebounded from sub 90.00 and is back close to 50 day MA at 90.57
- Better tone for US equity futures and key Asia Pac equity indices is the main driver of the turn around.
- Commodities still generally soft. Iron ore around $125/tonne in Singapore.
- Correlations with yield spreads lower compared to last week, now that RBA is behind us. Correlations with commodities and equities remain quite high though, see the table below.
- Domestic data upbeat in terms of NAB survey (particularly business conditions) and slightly better than expected Q1 retail sales. Not a big driver of sentiment in the near term though, given the weaker near term correlation for yield spreads.
Table 1: AUD/USD Correlations
Source: MNI - Markets News/Bloomberg
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