AUD/USD Back Above 0.6300, As Lower US Yields Offset Weaker Equities

AUD/USD clawed back losses post the Asia close on Thursday. Yesterday's lows were at 0.6270 and by late in NY trade we had moved back to ~0.6330. We sit slightly lower in early Friday dealings, last near 0.6320, after gaining 0.21% for Thursday's session. The A$ was only outperformed in the G10 space by NZD, with the USD mostly recording modestly positive gains against the other majors.

• The technical set up remains a bearish one for AUD. Yesterday we pierced support at 0.6286 the Oct 3/13 low. Focus remains on 0.6215, a Fibonacci projection. The 20-day EMA sits at ~0.6350, while the 50-day is higher at 0.6414.
• US yields continued their recent volatility, the 10yr pulling back to 4.85% by the close, versus earlier highs near 4.99%. US data showed Q3 GDP stronger than expected, but the detail was less impressive. Initial jobless claims also ticked higher.
• Equity sentiment was weaker in US (SPX -1.18%) and EU markets, but AUD/JPY still climbed, pushing back above 95.00. The aggregate Bloomberg commodity index fell 0.44%, the base metals index lost 0.81%.
• On the data front today, we have Q3 PPI, there are no consensus expectations.