A$ Underperforms As Risk Appetite Deteriorates, AUDUSD Above 65c

The risk-off tone on Friday drove the Aussie to underperform the G10. AUDUSD approached 65c but made a low of 0.6510 and fell 0.8% to 0.6517. It is currently around 0.6515. The USD continued its strength from the APAC session and finished 0.4% higher.

• The move lower in AUDUSD has reinstated a bearish threat and focus is on support at 0.6478, March 5 low. The bear trigger is at 0.6443. Moving average studies are highlighting a short-term downtrend. Initial resistance is at 0.6570, 50- day EMA.
• Aussie is down 1% against the yen at 98.66, close to the intraday low of 98.52. AUDNZD fell to 1.084 late in the APAC session and then trended higher through the rest of the day to be flat at 1.0871. The pair is currently slightly lower at 1.0868. AUDEUR is 0.4% lower at 0.6028 with an intraday low of 0.6016. AUDGBP is down 0.4% to 0.5169 after breaking below 0.5160 briefly.
• Equities were generally weaker with the S&P down 0.1% and Euro stoxx -0.4% but FTSE up 0.6%. VIX is slightly higher at around 13%. Oil prices were down moderately with Brent -0.3% to $85.56/bbl. LME metal prices were down 0.7% to be down 2% on the week. Iron ore has returned to around $108/t after falling to $106 on Friday.
• There are no data or events today in Australia with the focus of the week on Wednesday’s February CPI data.