A$ Underperforms But Finished Flat, PMIs Coming Up

AUDUSD reached a peak of 0.6573 during APAC trading yesterday boosted by the rally in HK/China equities and then trended lower thereafter to underperform and finish flat at around 0.6548 driven by softer US equity sentiment. It reached an intraday low of 0.6533. The USD is little changed despite higher yields.

• AUDUSD is rebuffing the bearish trend condition but the recent recovery is still seen as corrective at these levels. Initial support is at 0.6443 and key resistance is 0.6625.
• Aussie was weaker against most currencies but 0.1% higher against the yen at 98.37. It reached a high of 98.60. AUDNZD broke below 1.06 a number of times and is now down 0.3% to 1.0597. NZD strength has been driven by strong demand at the latest long end NZGB syndication. AUDEUR is down 0.1% to 0.6053 and AUDGBP -0.1% to 0.5182.
• Equity markets were generally stronger with the S&P up 0.1% and Euro stoxx +0.3% but the FTSE fell 0.7%. VIX is lower at 15.3%. Oil rallied with Brent up 1% to $83.13/bbl. Copper rose 0.3% and iron ore is just under $120/t.
• Today Judo Bank preliminary PMIs for February print. RBA Governor Bullock appears with General Counsel Parr before the Senate Economics Committee at 1300 AEDT re RBA reforms.