A$ Weaker During Session, General Risk Off Move

After spending most of yesterday above 0.6800, AUDUSD has been trending down during today’s session and is currently trading around 0.6785 following a low of 0.6773 earlier. DXY is 0.25% higher than Friday’s close.

• AUDJPY is down 0.6% and is currently trading around 88.35, close to the intraday low. The yen is its strongest against the USD since June, exacerbated by low liquidity as Japan is closed today. In addition, US futures yields are a little higher and expectations for the BoJ’s inflation forecasts are becoming increasingly hawkish.
• Aussie is down 0.4% against the pound and 0.3% versus the euro to around 0.5625 and 0.6360 respectively. AUDNZD has been range trading and is around 1.0754.
• Weaker equity markets in the region are also adding to yen strength with the ASX down 1.8% and the Hang Seng -2%. S&P e-minis are 0.3% lower. WTI oil prices have also sold off by 0.8% to $79.65, under $80/bbl again. Copper prices are down 0.1% and iron ore is down a percent to $116/tonne.
• The Judobank final December manufacturing PMI was revised down 0.2 points to 50.2, its lowest since May 2020. There is US manufacturing PMI data later today.