AUD Off Highs, Bullock Highlights Inflation Challenge

AUD/USD lost 0.20% for Wednesday's session, marginally outperforming some other higher beta FX (NOK and NZD). We pulled back to near 0.6520 in NY trade on Wednesday, which closely matched with the previous resistance point. Hence this level will likely be monitored closely on any fresh pull backs today. The pair last tracked in the 0.6540/45 region.

• A$ outperformance against some G10 pairs was likely aided by RBA Governor Bullock's speech late yesterday in Sydney (AEDT). The Governor noted that the final stretch of reducing inflation to target will take longer than the initial leg (see this link). We saw AU bond futures pressured as Bullock spoke.
• US yields also ticked higher on Wednesday, albeit finishing off session highs, which curbed AUD gains and aided USD sentiment more broadly.
• For AUD/USD we have not been able to sustain recent moves above the 200-day EMA (0.6566). Note the 100-day EMA sits further south just under 0.6480.
• The local data calendar has preliminary Nov PMIs out soon.
• Iron ore sits off recent highs, last near $133/ton. Broadly commodity sentiment softened on Wednesday, as the USD recovered some ground.