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AUD: A$ Firms But Trend Needle Still Points South, AUD/JPY Surges Post BoJ

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AUD/USD's rebound ran out of momentum at the 0.6265 level in Thursday trade. We sit slightly lower now, back around 0.6235/40, still up 0.35% for the Thursday session. Broader USD trends were mixed, with yen falling sharply in the aftermath of the BoJ outcome and press conference yesterday, losing 1.65% for the session. This helped push dollar indices higher (the BBDXY index up 0.20%). GBP was also weaker post the BoE decision 

  • For AUD/USD techs, the trend needle continues to point south. Yesterday's low of 0.6199 is a near term focus point on the downside. The break lower from Wednesday opens 0.6158 next, a Fibonacci projection. Initial firm resistance to watch is 0.6413, the 20-day EMA.
  • In the cross asset space, the US curve steepened, as US 2yr yields fell 4bps to 4.31%, the 10yr up 5.5bps to 4.57% in the aftermath of the Fed outcome. US data didn't impact sentiment. In the equity space, US markets were down a touch.
  • For commodities, the aggregate Bloomberg index was down 0.67%, the 6th straight decline. The base metals index fell 1.46%, its 7th straight decline. Iron ore is back near $101/ton. Carry over from the hawkish Fed/China growth outlook potentially influencing trends in this space.
  • AUD/JPY surged though nearly 2% and is back above the 98.15 level. This is fresh highs for the month for the pair.
  • Today on the data front we have Nov private sector credit out.
  • In the option expiry space, note the following for NY cut later: $0.6285(A$500mln), $0.6330-50(A$2.2bln), $0.6494-00(A$2.0bln). 
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AUD/USD's rebound ran out of momentum at the 0.6265 level in Thursday trade. We sit slightly lower now, back around 0.6235/40, still up 0.35% for the Thursday session. Broader USD trends were mixed, with yen falling sharply in the aftermath of the BoJ outcome and press conference yesterday, losing 1.65% for the session. This helped push dollar indices higher (the BBDXY index up 0.20%). GBP was also weaker post the BoE decision 

  • For AUD/USD techs, the trend needle continues to point south. Yesterday's low of 0.6199 is a near term focus point on the downside. The break lower from Wednesday opens 0.6158 next, a Fibonacci projection. Initial firm resistance to watch is 0.6413, the 20-day EMA.
  • In the cross asset space, the US curve steepened, as US 2yr yields fell 4bps to 4.31%, the 10yr up 5.5bps to 4.57% in the aftermath of the Fed outcome. US data didn't impact sentiment. In the equity space, US markets were down a touch.
  • For commodities, the aggregate Bloomberg index was down 0.67%, the 6th straight decline. The base metals index fell 1.46%, its 7th straight decline. Iron ore is back near $101/ton. Carry over from the hawkish Fed/China growth outlook potentially influencing trends in this space.
  • AUD/JPY surged though nearly 2% and is back above the 98.15 level. This is fresh highs for the month for the pair.
  • Today on the data front we have Nov private sector credit out.
  • In the option expiry space, note the following for NY cut later: $0.6285(A$500mln), $0.6330-50(A$2.2bln), $0.6494-00(A$2.0bln).