AUD/USD Downtrend Persists

AUD/USD has had a volatile start to the week. We finished last week just under 0.6530, while we currently sit just above this level. We did dip to 0.6510 earlier, which was below lows from Friday's session. The currency lost 1.76% through Friday's session, and lost 2.80% for the week. The technical downside target is 0.6464, a 61.8% retracement of 2020-2021 bull leg, as broad based USD strength continues.

• The A$ was around mid range in terms of G10 FX performance on Friday. AUD/GBP is back above 0.6000 (last 0.6030), fresh highs back to 2017. The pound was the weakest performer on Friday.
• Cross-asset signals were negative the AUD. Equities were weaker across the board, while the VIX got above 32%, before closing just under 30%.
• This morning US futures opened weaker, but are now back around flat, which has helped pull AUD/USD off earlier lows.
• The Bloomberg spot commodity index fell by 3% on Friday, base metals were down 3.7%. Iron ore edged down to $96/tonne.
• There is little on the domestic data calendar until Wednesday's August retail sales print.