A$ Underperforms, AUDUSD Struggles To Hold Above 66c

AUDUSD trended higher and broke above 66c in the European session and reached an intraday high of 0.6621. But the pair began to decline following the release of the US PMI data, which showed a healthy rise, and settled around 0.6600. Then higher US Treasury yields drove it lower again and it is currently down slightly on the day to around 0.6575, and Aussie has underperformed the G10 except CAD. The USD index is down 0.3%.

• A bearish theme remains for AUDUSD with initial and key support at 0.6526, December 7 low. Initial resistance is at 0.6633, 50-day EMA, with the bull trigger at 0.6871.
• AUDJPY trended lower over Wednesday and is now down 0.6% to 97.00. AUDNZD moved lower across the APAC session and then took another leg down during NY trading and the pair is now 0.2% lower at 1.0760. AUDEUR is down 0.3% to 0.6043 and AUDGBP -0.3% to 0.5171.
• Equity markets were generally higher with the S&P up 0.1% and the Euro stoxx soaring 2.2%. Oil prices rallied with Brent up 1% to $80.35/bbl. Copper is 2.1% stronger and iron ore is higher at almost 136/t.
• Today the RBA bulletin prints and the PM speaks at the National Press Club at 1230 AEDT on the changes to the stage 3 tax cuts.