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AUD: A$ Hits Fresh Highs Amid US Yield Pullback, Bullish Outlook Intact

AUD
RegionGlobalBulletAPACForeign Exchange BulletsAustraliaMarkets

AUD/USD tracks near 0.6900 in early Monday dealings, off intra-session highs from Friday (0.6937). The currency posted a modest gain for Friday's session, as the dollar was weighed post the PCE print. The BBDXY USD index finished down 0.16%, but recovered from intra session lows around 1216.5, which also marked earlier September lows.

  • For AUD/USD, outside of intra-session Friday highs, there are several projection levels higher, at 0.6964 and 0.6984 respectively, while 0.7029 is the Feb 14 high from 2023. The 20-day EMA is ack around 0.6776 on the downside. The trend structure remains bullish.
  • In the cross asset space, US yields finished lower across the key benchmarks, led by the front end. The 2yr off 7bps to 3.56%. Rate cut expectations rose the PCE inflation and spending data. Equity sentiment was positive for EU markets on Friday, but US markets faltered into the weekend with modest losses. This likely helped trimmed AUD gains as the US Friday session unfolded.
  • Aggregate commodity indices were higher in Friday trade, while iron ore is back above $104/ton on China stimulus optimism. Copper eased though.
  • AUD/JPY couldn't sustain its break of the 200-day simple MA (around 100.00), with the pair back to 98.15,as Japan's Shigeru Ishiba won the LDP leadership run off against Sanae Takaichi, a BoJ dove.
  • On the data front today we have August private sector credit, which is unlikely to shift sentiment. 
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AUD/USD tracks near 0.6900 in early Monday dealings, off intra-session highs from Friday (0.6937). The currency posted a modest gain for Friday's session, as the dollar was weighed post the PCE print. The BBDXY USD index finished down 0.16%, but recovered from intra session lows around 1216.5, which also marked earlier September lows.

  • For AUD/USD, outside of intra-session Friday highs, there are several projection levels higher, at 0.6964 and 0.6984 respectively, while 0.7029 is the Feb 14 high from 2023. The 20-day EMA is ack around 0.6776 on the downside. The trend structure remains bullish.
  • In the cross asset space, US yields finished lower across the key benchmarks, led by the front end. The 2yr off 7bps to 3.56%. Rate cut expectations rose the PCE inflation and spending data. Equity sentiment was positive for EU markets on Friday, but US markets faltered into the weekend with modest losses. This likely helped trimmed AUD gains as the US Friday session unfolded.
  • Aggregate commodity indices were higher in Friday trade, while iron ore is back above $104/ton on China stimulus optimism. Copper eased though.
  • AUD/JPY couldn't sustain its break of the 200-day simple MA (around 100.00), with the pair back to 98.15,as Japan's Shigeru Ishiba won the LDP leadership run off against Sanae Takaichi, a BoJ dove.
  • On the data front today we have August private sector credit, which is unlikely to shift sentiment.