January 26, 2023 21:34 GMT
AUD/USD Dips Sub 0.7100 Supported, PPI & Trade Prices On Tap
AUD/USD dips were supported post the Asia close on Thursday. We got above 0.7140, which was fresh highs, but then moved to the 0.7075/80 region, before recovering back above 0.7100. The USD bounce post the GDP data proved to be short lived. AUD/USD currently tracks around the 0.7115 level. PPI and trade price data are on tap today, as local markets return from yesterday's holiday.
- Cross asset signals were supportive from an equity market standpoint, with solid gains across US & EU equities. Commodity indices also rose, the Bloomberg aggregate index +0.55%, copper +1% to $429 (CMX basis), while iron ore edged back up to $126/tonne.
- AUD/JPY got to 91.82, as the yen underperformed broader G10 moves. The pair is back at 92.66. Note the simple 100-day MA (92.75) and 200 day MA (93.05) are nearby on the topside.
- China President Xi Jinping reportedly wants deeper cooperation with Australia, Xinhua News Agency Reported. This comes after a further thawing in relations at Davos earlier in the month, while trade representatives from both countries are expected to meet soon.
- Q4 PPI prints, there is no consensus, with the previous q/q at 1.9%, y/y at 6.4%. Export prices are expected at -1.3% q/q from -3.6%, while import prices are forecast at 1.3% q/q, versus 3.0% prior.