A$ Weakest G10 Performer For Wednesday, But Support Still Evident Ahead Of 0.6730

AUD/USD was the weakest performer in G10 for Wednesday's session, losing 0.50%. Post the Asia close the pair was volatile, particularly through the FOMC/press conference. Support was clearly evident ahead of the 0.6730 level, which also coincided with lows post yesterday's weaker than expected Q2 CPI data. On the topside we found selling interest above 0.6780. We track at 0.6755/60 in the first part of dealings today.

• The 50-day EMA at 0.6722 and July 24 low at 0.6715 remain focus points on the downside for AUD/USD. Note as well the simple 200-day MA is just under 0.6730. On the topside, the July 20 high comes in at 0.6847.
• Some carry over from yesterday's weaker than expected inflation data, which has trimmed August hike odds, likely hurt the AUD, particularly as major USD indices finished up mostly lower (-0.25-0.30%). AUD/JPY is back to 94.75, although found some support ahead of the simple 50-day MA (around 94.40).
• In the cross asset space, the net pull back in US yields likely helped curb AUD/USD downside, but the aggregate Bloomberg commodity index fell 0.65%, the base metals index down 1.23%. Iron ore is back to $113/ton against recent highs near $115.
• On the data front today we have Q2 terms of trade with export and import prices due. Export prices are seen down -6.7% (prior 1.6%), while import prices are projected at -0.8% (prior -4.2%).