A$ Top G10 Performer Thursday, But Still Sub Key EMAs, Minimum Wage Outcome On Tap Today

The A$ was the top performer in G10 for Thursday. From sub 0.6500 late in Asia Pac trade we got above 0.6580 towards the end of the NY session. Broad USD weakness/lower yields helped, as US data (unit labor costs/prices paid from ISM) was weaker than expected. Still, from a technical perspective the move is still considered corrective. Resistance is seen at the 20-day EMA (0.6604) and 50-day (0.6659). The recent low from May 31 comes in at 0.6458.

• Aiding the A$ recovery was a firmer commodity price backdrop. Iron ore is back near $102/ton, versus recent lows sub $95/ton. Copper rose 2% to $371 on a CMX basis, while the Bloomberg base metals index gained 1.78% for the first rise since last Friday.
• Carry over from the China Caixin manufacturing PMI helping on the commodity front.
• On the data front today we have home loan data for Apr. The market expects a +2.0% outcome, versus +4.9% prior.
• There is likely to be greater interest in the minimum wage outcome set to be handed down. Reports suggest this will take place at 10am local time (01:00 BST).
• The unions have been arguing for a 7% rise to keep in line with the cost of living and Treasury assumed it would be around there in its budget projections. RBA Governor Lowe has said that any increases above 2-3% plus productivity growth over time would be inflationary. See this link for more details.