A$ Underperformance Continues, Key Support Broken Briefly

Aussie didn’t rise above 66c again versus the US dollar on Wednesday and in fact continued to trend lower falling 0.5% to 0.6551 after a low of 0.6525. The continued pullback in risk, slight rise in the greenback (USD index +0.02%) as yields rose further and mixed China data meant the AUD underperformed the G10 except the yen.

• The AUDUSD intraday low broke just below key support at 0.6526 but the move was short lived and now the focus is on a clear break. The clear move below the trendline at 0.6640 has strengthened a bearish theme and signals that the pair could continue trending lower. Initial resistance is at 0.6645, 50-day EMA.
• Given the yen was the only G10 currency to underperform the Aussie, AUDJPY rose 0.2% to 97.07. AUDNZD was down slightly to 1.0721. AUDEUR fell 0.6% to 0.6020, close to the low of 0.6013, and AUDGBP -0.8% to 0.5166 after reaching 0.5155.
• Equity markets were down again with the S&P 0.6% lower, Euro stoxx -1% and FTSE -1.5%. WTI crude is up 0.6% to $72.83/bbl. Copper is 0.6% lower and iron ore is around $132/t.
• Today Australian employment data for December print and a 15k gain in new jobs with the unemployment rate steady at 3.9% is expected. Melbourne Institute inflation expectations for January are also out.