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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
AUD
AUD/USD's move above 0.6500 late yesterday quickly ran out of steam, and we printed fresh lows overnight. The pair got to 0.6414 amidst a broad based USD recovery (DXY back through 114.00). We now sit a little higher at 0.6430/35. Lows from May 2020, at 0.6373, are in play though. On tap today is retail sales, +0.4% expected for the August print, against +1.3% prior.
- The general bias is that spending will moderate under the weight of tighter financial conditions. To date though, spending has remained resilient to such tightening and much weaker consumer sentiment readings.
- The A$ was the worst performer in the G10 space through Tuesday's session. Cross asset signals weighed, although equity weakness wasn't as bad as previous sessions. The US VIX index closed higher (32.58%), but moved away from intra-session highs of 34%.
- Outside of energy, commodities were mostly on the back foot. The aggregate Bloomberg indices finished lower, particularly for base metals (-1.18%). The base metals index is now back at July YTD lows, see the chart below.
- AU yield spreads with the US remain range bound, although as we noted yesterday, short term correlations with AUD/USD are negative now.
Fig 1: AUD/USD & Base Metals
Source: MNI - Market News/Bloomberg
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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