AUD/USD Just Above Session Lows Near 0.6600

AUD/USD sits just above session lows, the pair last in the 0.6610/15 region. Earlier lows at 0.6606 remain intact, but the currency is struggling to maintain much upside, with earlier highs at 0.6630. Lower NZD levels have weighed, post weaker NZ employment figures. Still, the AUD/NZD cross sits above recent lows, last near 1.0800.

• For AUD/USD focus remains on whether we can test sub 0.6600. 0.6596, the June 29 low, is seen as key support on the downside.
• Equity sentiment is negative in the region, following losses in Tuesday trade in US/EU markets, while US futures track lower post the Fitch ratings downgrade, albeit away from earlier lows. AUD/JPY is only marginally weaker though, last near 94.70, against earlier lows around 94.50.
• AU-US 2yr government bond yield spreads sit near recent lows, tracking at -106bps currently.
• In the commodity space, iron ore is a touch lower, last near $105.50/ton, despite positive gains for China developers. Copper is around flat.