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A$ Underperforms Further USD Weakness, Consumer & Business Sentiment Out Today

AUD

The A$ recovered in NY trade on Monday, after getting close to 0.6620, the pair rebounded to 0.6680. We sit just below this level currently. This left AUD/USD down slightly for Monday's session (-0.22%) and the worst performer in the G10 space. The pair remained within ranges seen last Friday though. Both CAD and NZD also underperformed, but NOK outperformed, thanks to a stronger CPI print.

  • Broader USD indices were lower, as US yields pulled back ahead of the upcoming CPI print (falling used car prices gave hope of a downside surprise this week). The BBDXY shed 0.24%, while the 10yr yield fell 7bps to be back sub 4.00%.
  • Equity sentiment was better, but this didn't help AUD/JPY, which fell further and is tracking close to 94.30 currently. Commodity indices were a touch higher.
  • On the data front today, we have important sentiment readings on tap today, as well as the CBA household spending measure for June. This is followed by the Westpac consumer sentiment index for July, then later the NAB business confidence and conditions indices for June.

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