A$ Underperforms On Risk Pullback, Jobs Data Coming Up

Aussie underperformed the G10 on Wednesday driven by a pullback in risk appetite, which favoured the yen and European currencies. AUDUSD fell 0.1% to 0.6729, close to the low of 0.6721, but off the earlier high of 0.6755. Comments from Trump that the US dollar is too strong weighed on the greenback with the USD index down 0.3%.

• AUDUSD is 0.8% lower this week but the move is seen as corrective with bullish conditions intact. Initial support is at 0.6711, 20-day EMA, with resistance at 0.6799, July 11 high.
• AUDNZD fell 0.6% to 1.1065 after Q2 NZ CPI data showed continued solid domestic price pressures.
• AUDJPY is down sharply with the pair 1.5% lower at 105.00, lowest since mid-June. AUDEUR fell further and is down 0.4% to 0.6152. AUDGBP is -0.3% to 0.5173.
• Equities were generally weaker with the S&P down 1.4% and Euro stoxx -1.1% but FTSE up 0.3%. Oil prices rose sharply with WTI up 2.9% to $83.10/bbl. But copper fell 0.7% and iron ore is down to around $105/t.
• Australian June labour market data are out today. Employment is forecast to rise 20k with the unemployment rate ticking up to 4.1%.