AUD/USD Back Sub 0.6800, But Outperforms USD Rebound

The A$ outperformed in the G10 space through Thursday's session. It recorded the only rise against the USD, albeit finishing up a modest 0.1%. The first part of the post Asia close saw AUD/USD pushing higher, but we ran out of steam near 0.6850, as broader USD sentiment turned around on a strong yield bounce. The pair fell back to 0.6770 and sits slightly higher now, last near 0.6780.

• US data was mixed, with the Philly Fed and housing data slightly softer than expected, but this was overshadowed by a drop in jobless claims. US yields were 6.9 to 11.6bps firmer for Thursday, led by the 3-10yr segment.
• This saw some of AUD's yield outperformance, post Thursday's jobs data beat, erode somewhat. US equities fell, particularly in the tech space, as higher yields bite. AUD/JPY is back at ~95.00, versus Thursday highs just above 95.40.
• Aggregate commodity indices were still firmer, despite the USD rebound. Base metals up 0.83%, the aggregate Bloomberg index +0.49%. Iron ore is slightly off recent highs, last tracking under $114/ton.
• The local data calendar is empty today, with focus resting on next Wednesday's CPI.