A$ Slips Amid Broad USD Gains, US Yields Firm On Data & Fed Comments

AUD/USD mostly tracked lower post the Asia close on Thursday. The pair sits near 0.6700 in early Friday dealings, having lost nearly 0.60% for Thursday's session, amid broad USD gains. The BBDXY USD index rose 0.41%, the DXY up nearly 0.50%.

• A slightly firmer US composite PMI read and some cautious comments from Fed’s Schmid saw US treasury futures come under pressure Thursday, with US front-end yields rising around 7bps, resulting in a better session for the US dollar.
• The A$ saw similar falls to SEK, while JPY and NOK fell by slightly more. CAD, CHF and GBP were relative outperformers.
• Equity sentiment was weaker in US markets, the SPX down 0.90%. Profit taking ahead of Jackson Hole was cited. Still, AUD/JPY sits above 98.00 in early Friday dealings up from intra-session lows on Thursday. Yen was weighed by the US yield move through Thursday trade.
• For AUD/USD techs, the July 16 high at 0.6764 isn't too far away. Support is seen at 0.6630 the 50-day EMA. A bull cycle remains intact for the pair despite Thursday's pullback.
• The local data calendar is quiet until next week, with July CPI out on Wednesday, the highlight.
• We do have Q2 NZ retail sales out today, which could drive some spill over via the AUD/NZD cross. This cross is back to 1.0925/30, generally tracking lower over the past week.