AUD/USD Close To 0.6600 Amid Mixed Drivers ​

AUD/USD is tracking around 0.6600 currently, not too far from session lows (0.6588). We are down around 0.10% from NY closing levels last Friday at this stage, which is broadly in line with other G10 trends. The USD is higher, supported by firmer yields.

• Friday highs near 0.6640 remain intact, while we remain comfortably above late May/early June lows sub 0.6500. The 20-day EMA is very close by, just above the 0.6600 level. The 50-day sits higher in the 0.6650/55 region.
• Earlier data showed the Melbourne Institute inflation gauge moderating but from a high level (5.9% y/y), while Q1 GDP partials were mixed. The wages bill grew at a slower pace, but will be watched closely in the GDP report on Wed. We get the RBA decision ahead of that tomorrow. Current market pricing is just over 50% priced for this meeting (in terms of a 25bps hike).
• AUD received some support post the Caixin services PMI beat in China, but there hasn't been much follow through. Iron ore continues to recover, last near $105.50/ton, but we are down on intra-day highs of $108/ton in terms of the active SGX contract.