AUD/USD Pares Some Of Wednesday's Losses

AUD/USD sits higher in the session to date. The pair last at 0.6370/75, +0.30% firmer, as the broader USD rally takes a breather (BBDXY -0.07%). The A$ is marginally outperforming the majors.

• Early highs from yesterday came in at 0.6410, while the 20-day EMA is just under 0.6430. Lows in NY Wednesday trade were at 0.6331.
• On the data front, August retail sales were close to expectations, rising 0.2%m/m, versus 0.3% forecast and 0.5% prior. Some parts of discretionary spending held up, but household good retailing remained weak. Lower job vacancy data suggests a cooling labor market, although the ABS notes the jobs market is still tight by historical standards.
• AU-US government bond yield spreads remain around recent highs for the 2yr, -104bps. On a 10-yr basis are still relative steady, -15bps.
• US equity futures are higher, but away from best levels, last +0.20% firmer. Regional Asia Pac equity trends are mixed so far. Metal prices are a touch higher in terms of iron ore and copper.
• Tomorrow delivers August private sector credit, but most focus will rest on next week's RBA decision (the consensus sees no change).