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AUD Outperforms G10 On Better Risk Sentiment, Watch October CPI Data


AUD outperformed the rest of the G10 against the USD as risk sentiment improved in the wake of China’s announcement to resolve Covid-related concerns and a lack of escalation of the unrest seen on the weekend. DXY finished up 0.2% after shifting lower through the APAC session yesterday.

  • AUDUSD reached a high of 0.6749 overnight before giving up some of its gains and is now trading around 0.6690. AUD has been trading in tight ranges against the NZD and JPY and is now around 1.079 and 92.77 respectively. It has gained against EUR and GBP, currently at 0.6478 and 0.5597.
  • AUDUSD remains in a bull trend with firm support at 0.6585, the 50-day EMA. The uptrend would resume with a clear break of 0.6797, the November 15 high.
  • Equity markets were mixed overnight with the S&P 500 down 0.2%, the Dow Jones & Eurostoxx flat and the FTSE 100 up 0.5%. WTI oil prices ended the NY session up 1.8% on hopes of China easing restrictions and news that was then denied, that OPEC+ would cut output further. Copper prices rose 0.5% also on a better Chinese demand outlook. Iron ore has held above $100 and is currently around $100.50.
  • Today the focus in Australia is likely to be October CPI which is expected to rise to 7.6% y/y from 7.3%. There is also construction work done for Q3 and building approvals for October, which are projected to fall again. RBA’s Kearns speaks at 11.00AEDT. Later there are a number of Fed speakers, including Chairman Powell.

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