AUD/USD Dips Sub 0.6400, August Monthly CPI On Tap Today

AUD/USD faltered late in NY trade on Tuesday, dipping sub 0.6400, although we didn't breach earlier lows under 0.6390. We track just shy of 0.6400 currently, having lost 0.42% for Tuesday's session, the third worst performer in the G10 space. Broad USD gains continued for the most part, the BBDXY +0.32% to 1266.76.

• The technical backdrop for the A$ hasn't changed, with focus on scope for a move into the 0.6350/0.6360 region, a break through which would open up 0.6272, the Nov 3 2022 low. Resistance remains around 0.6520/25, which mark recent highs.
• Cross asset headwinds were present in the equity space, with EU and US equities down. The SPX lost near 1.50%, the VIX closed near 19%.
• Nominal US yields were relatively steady, although the real 10yr yield made fresh highs, closing at 2.23% in Tuesday NY trade. US data was mostly weaker than expected, although the Richmond Fed manufacturing index posted a decent beat at +5 (-7 was forecast).
• Commodity indices were modestly weaker, while iron ore lost further ground to $114/ton.
• The main data focus today will be on the August monthly CPI print. the market expects 5.2% y/y (prior was 4.9%).