A$ Underperforms With Other Commodity Currencies

AUDUSD trended lower throughout Tuesday and headed towards 66c. The pair fell 0.4% to 0.6615. It closed at 0.6685 on Friday. Monday’s China rate cuts have weighed on commodity prices and resulted in the Aussie underperforming the G10 along with NZD and Scandi. Soft US equities also weighed on the risk-sensitive AUD. The USD index rose 0.2%.

• AUDUSD fell to an intraday low of 0.6611 and is below the 50-day EMA, which is bearish. Key support is at 0.6576, while the bull trigger is 0.6799.
• The yen continued to appreciate in the softer risk environment and so AUDJPY fell 1.4% to 102.90, the lowest since early June and almost 6% lower than the July 11 peak.
• AUDGBP is down 0.2% to 0.5124 after a high of 0.5140 earlier. AUDEUR is 0.1% lower at 0.6094. After range trading through the European/US sessions, AUDNZD is slightly lower at 1.1105.
• Equities were mixed with the S&P down 0.2% and FTSE -0.4% but Euro stoxx up 0.4%. Oil prices were lower with Brent down 1% to $81.58/bbl. Copper fell 0.8% and iron ore is around $102/t after approaching the $100 mark.
• Today Judo Bank preliminary July PMIs print. The composite was 50.7 in June.