A$ Underperforms But Steady Against Kiwi Ahead Of NZ CPI

Aussie and kiwi underperformed the rest of the G10 taking a step lower following better-than-expected US retail sales. Monday’s disappointing data from China probably also continues to weigh. AUDUSD is down 0.4% to 0.6734 off the intraday low of 0.6715. It is currently at 0.6732. The USD index unwound its earlier gains to be flat on the day.

• AUDUSD tested the previous breakout level of 0.6714 on Tuesday following the US data, but bullish conditions remain intact and recent weakness appears corrective. Initial support is at 0.6708, 20-day EMA, while resistance is 0.6799, July 11 high.
• AUDNZD recovered from the earlier low of 1.1103 to be flat on the day at 1.1128 ahead of Q2 NZ CPI coming up soon.
• AUDJPY trended lower over the day to be down 0.2% to 106.61. AUDEUR is down another 0.4% to 0.6177, close to the low of 0.6173, to be down 0.8% since July 10. AUDGBP is also 0.4% lower to 0.5190.
• Equities were mixed with the S&P up 0.6% but Euro stoxx down 0.7%. Oil prices were weaker with Brent 1.1% lower at $83.85/bbl. Copper is down 1.5% and iron ore is around $108/t.
• Today the Westpac leading indicator for June prints and RBA Head of Economic Research participates in a panel at 1800 AEST.