May 08, 2022 22:09 GMT
AUD finished last week on a softer note, worst performer in the G10 FX space through Friday's session, down 0.50%.
- We open this morning around 0.7070, which is close to the lows from the Friday session.
- Equity sentiment remained soft in the major markets, and while the VIX index came lower it stayed above 30.
- Commodities were mixed, oil higher in terms of Brent, but iron ore continued to weaken. China demand still a potential concern on this front, following last week's very soft PMI results.
- Yields moved in favor of the USD, although mostly in the back end, post the non-farm payrolls print.
- There is no major data releases today. On Tuesday, focus will turn to CBA Household Spending, NAB Business Confidence & quarterly retail sales ex inflation.
- From a technical perspective, the near-term focus is likely to be on whether we can see a test of the 0.7030 level. This level has been defined as key support and the bear trigger. On the upside firm resistance is seen at 0.7292. the 50-day EMA.