AUD/USD Just Shy Of 0.6700, Holding Most Post Payroll Gains

AUD/USD breached 0.6700 late in NY trade on Friday, amid broad USD weakness. We sit slightly lower in the first part of trade today, last near 0.6685/90. Friday's gain was near 1%, as the USD faltered post the weaker than expected US jobs data (the DXY lost 0.90%, BBDXY -0.70%).

• In terms of technicals, the 100-day EMA sits just above 0.6700, while the 200-day is higher near 0.6750. On the downside, support has been evident around 0.6600 in the recent weeks.
• Cross asset drivers were positive in terms of the pull back in short term US yields in the aftermath of the payrolls print, but the back end stayed positive from a yield standpoint (10yr around 4.06%).
• US equities finished modestly lower, while commodity indices rose. The headline Bloomberg index gained 0.52%, the base metals index 0.35%. Iron ore is back around $109/ton, still sub recent highs near $112/ton.
• The local data calendar is empty today. Australian Trade Minister Don Farrell is travelling to Brussels to meet with the EU Commissioner for Trade and the Commissioner for Agriculture, with the aim of reaching a free trade agreement. Australian PM Albanese will also be in Germany today to meet with Chancellor Scholz. The AFR reports he may announce a A$1bn defense export deal with the country.