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AUD/USD Eyeing $0.7000 Test

AUD

AUD/USD had continued to lead losses within the G10 space today. The pair is down a further 1.00% and threatening to break sub $0.7000.

  • Only NZD losses are on par with the AUD at -0.90%, while NOK is 0.70% weaker against the USD. AUD/USD is last at $0.7010.
  • Commodity FX is under performing the majors, which around 0.30-0.40% weaker against the USD. Note iron ore is back to a $130/tonne handle in Singapore, which is levels last seen in mid-February.
  • The broader driver is also weakness in Asia Pac equity markets and US/EU equity futures giving a continue risk-off feel to markets.
  • China trade figures in USD terms were not as weak as feared, with import growth flat versus -3.0% expected. Iron ore imports fell 7.1% in YTD y/y terms. Also given on-going Covid related restrictions for China into May, the data may not provide much positive boost in the near term in terms of the aggregate beat.

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