AUD: A$ Buoyed By Equities/Renewed Fed Cut Speculation

AUD/USD rallied through US trade on Thursday, sitting close to 0.6720/25 in early Fridayd ealings. The currency gained 0.72% for Thursday's session, only outperformed by NOK and SEK in the G10 space. Broader USD indices were weaker, the BBDXY off 0.42%. Major equity indices continue to consolidate at their weekly highs and this is providing a more stable backdrop across currency markets.

• Short end US rates also pared losses in late trade, after a WSJ article rekindled hope over a debatable 50bp rate cut at next week's FOMC meeting. The FT also ran with an article stating a 25bps versus 50bps cut was a close call. This likely aided late US equity market sentiment (SPX +0.75%) and provided broader USD headwinds.
• The US 2yr Tsy yield ended flat at 3.64%, but other parts of the curve were 2-2.5bps higher. Core yields in EU markets were mostly higher, driving some CHF and JPY relative underperformance (although CAD was the weakest G10 performer).
• For AUD/USD, despite bearish conditions prevailing, price action this week narrows the gap to initial firm resistance, which has been defined at 0.6767, the Sep 6 high. Clearance of this level is required to highlight a stronger reversal and expose key resistance at 0.6824, the Aug 29 high.  
• In the commodity space, the aggregate Bloomberg index rose 1.5%, while metals gained 1.61%. Iron ore sits under $95/ton, close to recent highs.
• The local data calendar is empty until next week.