A$ Stabilizes, AUD/JPY Rebounds On Improved Equity Tone

AUD/USD was one of the better G10 performers for Thursday's session, rising 0.42% and only outperformed by NZD. Still, trends weren't clear post the Asia close, with the currency unable to see much headway beyond 0.6630/35, but dips sub 0.6600 remained supported. We currently track just under 0.6630.

• The broader technical backdrop remains challenging, with the Apr 10 low of 0.6620 now broken, the Mar 10 low of 0.6565 is exposed, which is also a bear trigger. On the upside, the 20-day EMA is at 0.6689.
• Cross-asset drivers were mixed through Thursday's NY session, US front end yields surging 12bps to 4.07%, amid hawkish US inflation data. Still, equities also posted strong gains, led by the tech sector amid earnings optimism, but the SPX also gained nearly 2%.
• AUD/JPY has stabilized, back to 88.70/80 currently, versus recent lows just under 88.00. BoJ will be in focus for yen watchers today.
• Aggregate commodity indices were mixed, although base metals rose a touch. Iron ore is back to a $105/ton handle in terms of the active contract, while copper has also found some support.
• On the data front today, we have private sector credit for Mar, +0.3%m/m expected, also out is Q1 PPI (there is no consensus for these prints). Neither release should shift sentiment, with most focus resting on next Tuesday's RBA decision, with no change expected.