AUD Lower On Weaker Risk Appetite, Bullish Trend Remains

AUD underperformed the rest of the G10 overnight against the USD, except for CAD. It had trended higher earlier in the session to 0.6793 but then fell over a cent to 0.6720 as the USD strengthened. It is now higher again at around 0.6740.

• The USD resumed its downtrend after reports the missile strike in Poland had come from Ukraine but trended up again to finish only slightly lower than the previous NY close helped by stronger-than-expected US retail sales data.
• AUDUSD traded to close to 0.6800 the round number resistance before declining again to below 0.6768, the 61.8% retracement of the Aug 11 – Oct 13 downleg. AUD has been struggling to hold breaks above this but with the bullish trend in place 0.6800 is the next level to watch.
• AUD is down against the yen around 94.05 and also versus the euro around 0.6485. AUDNZD continues to trade in a tight range.
• Equity markets were generally lower with both the S&P 500 and Eurostoxx down 0.8%. Oil prices were lower with WTI down 1.6% as commodities struggled with the recovering USD and weaker risk sentiment. Base metals also struggled with copper down 1.7%. Iron continues to trade around $93/tonne.
• Today Australian October employment data prints and is forecast to rise 15k which is not expected to be enough to keep the unemployment rate at 3.5%. Later there are numerous Fed speakers.