AUD/USD above Thursday Highs, Better Asia Pac Equity Tone Helping

AUD/USD is seeing modest outperformance in the first part of Friday trade. The pair is at 0.6380, which is slightly above Thursday highs. This is +0.15% higher versus Thursday NY closing levels, and modestly outperforming the rest of the G10.

• The 20-day EMA is close to 0.6400, but key resistance is seen just above 0.6500, which has marked recent highs.
• Better Asia Pac equity sentiment is helping at the margins. The HSI is up around 2%. No clear specific drivers are evident, although liquidity is reportedly lighter. Some sell-side analysts have been upgrading the China economic outlook in light of recent data outcomes, which is likely helping at the margins.
• Australian stocks are also firmer, buoyed by the materials sector. The large miners are higher after headlines crossed that China's iron ore buying conglomerate (China Mineral Resource Group) is in talks with the companies over next year's supply.
• The active Singapore iron ore futures is down a touch though, last near $114.50/ton. Copper is doing slightly better, but is not too far off recent lows.