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AUD: AUD/USD Slips As China Stimulus Move Fades, US Yields Higher

AUD
RegionGlobalBulletAPACForeign Exchange BulletsAustraliaMarkets

The Aussie was lower on Wednesday, as the euphoria around the China stimulus looked to fade on, while the USD strengthen and US tsys yields rose on safe-haven appeal amid global economic concerns. Despite softer Australian CPI data, the RBA's hawkish stance limits the likelihood of near-term rate cuts, providing support for the pair.

  • The AUDUSD closed 1% lower at 0.6823 with was only the NOK & NZD performing worst in G10. Most of the gains came from the stronger USD although this could be seen as temporary as the BBDXY still remains under descending trendline off the July peak.
  • AUDUSD remains firm with the pair trading to a fresh trend high on Wednesday morning before the pullback. We now trade back on the prior key resistance at 0.6824 (Aug 29 high), which is now acting as support. A hold above here will confirm a resumption of the bull cycle that started Aug 5 and paves the way for a climb towards 0.6915, a Fibonacci projection. For bears, a reversal lower would refocus attention on key short-term support at 0.6622 (Sep 11 low), with initial firm support at 0.6770 (20-day EMA).
  • Risk markets were mixed on Wednesday with the Dow closing down 0.70%, Nasdaq closed little changed.  Commodities also mixed  with Copper & Aluminium both +2.50%, Gold continues to tick higher while Iron Ore closed down 0.20% while Oil sold off 2-3%.
  • Across FX markets the AUD struggled against most currencies, the AUDJPY closed little changed although it did make new cycle highs intraday hitting a high of 99.40, levels not seen since Sep 3rd
  • Today, we have Australian Job Vacancies & the RBA's Financial Stability Review both at 11:30 AEST / 9:30 HKT
  • While later tonight we have US weekly claims, GDP, PCE, Cap Goods, Durables, Pending home sales and a flurry of Fed speakers including Barr, Cook, Kashkari, Williams and Chairman Powell.
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The Aussie was lower on Wednesday, as the euphoria around the China stimulus looked to fade on, while the USD strengthen and US tsys yields rose on safe-haven appeal amid global economic concerns. Despite softer Australian CPI data, the RBA's hawkish stance limits the likelihood of near-term rate cuts, providing support for the pair.

  • The AUDUSD closed 1% lower at 0.6823 with was only the NOK & NZD performing worst in G10. Most of the gains came from the stronger USD although this could be seen as temporary as the BBDXY still remains under descending trendline off the July peak.
  • AUDUSD remains firm with the pair trading to a fresh trend high on Wednesday morning before the pullback. We now trade back on the prior key resistance at 0.6824 (Aug 29 high), which is now acting as support. A hold above here will confirm a resumption of the bull cycle that started Aug 5 and paves the way for a climb towards 0.6915, a Fibonacci projection. For bears, a reversal lower would refocus attention on key short-term support at 0.6622 (Sep 11 low), with initial firm support at 0.6770 (20-day EMA).
  • Risk markets were mixed on Wednesday with the Dow closing down 0.70%, Nasdaq closed little changed.  Commodities also mixed  with Copper & Aluminium both +2.50%, Gold continues to tick higher while Iron Ore closed down 0.20% while Oil sold off 2-3%.
  • Across FX markets the AUD struggled against most currencies, the AUDJPY closed little changed although it did make new cycle highs intraday hitting a high of 99.40, levels not seen since Sep 3rd
  • Today, we have Australian Job Vacancies & the RBA's Financial Stability Review both at 11:30 AEST / 9:30 HKT
  • While later tonight we have US weekly claims, GDP, PCE, Cap Goods, Durables, Pending home sales and a flurry of Fed speakers including Barr, Cook, Kashkari, Williams and Chairman Powell.