AUD/USD Holding Above 0.6400, But Technical Conditions Still Bearish

AUD/USD finished Friday's session unchanged versus Thursday closing levels. This left us just above 0.6400 and we are slightly firmer in early trade today, last near 0.6410. The currency outperformed the rest of the G10 except for JPY (which rose around 0.30% for Friday's session). AUD/USD very much respected recent ranges though, largely holding between 0.6380 and 0.6420.

• The technical picture still looks negative. Support is seen at 0.6365, the Aug 17 low, while bears will target a move to 0.6285, the Nov 4 2022 low. On the upside, firm resistance is seen at the 20-day EMA - at 0.6560. Short-term gains would be considered corrective.
• Cross asset trends were mixed through Friday, with a weaker equity tone, albeit at the margins, likely helping drag AUD/JPY a little lower (Last 93.10/15). More broadly, a softer US yield tone took some of the wind out of the USD indices at the end of last week.
• Commodity indices were mixed, the aggregate index +0.46%, while base metal were flat. This index is off 7% so far in August. Renewed China growth concerns not helping on this front, with iron ore down to $104/ton in latest dealings.
• The local data calendar is empty for much of this week. Focus will rest on potential strike action at key gas platforms on the North West Shelf. Australia may also host a visit from China's Foreign Minister, although no firm dates have been announced yet.