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AUD/USD Plumbs New Daily Lows Headed into NY Hours

AUD
  • AUD/USD shows to new session lows of 0.6737 headed into NY hours, extending the pullback in the pair to just over 0.5%. This narrows the gap with first support at the 200-dma of 0.6718 and wholly reverses the jobs report-inspired move higher earlier this week. Marks have also shrugged off any bullish signals from the inverted hammer candle posted yesterday, with the pair now lower for a fifth session in the past six.
  • Weakness in local equity markets (mining firms were a particular sources of downside) may be partially responsible, with industrial metals and US equity markets/sentiment seen stronger. AUD/SEK is also lower, preventing the cross from staging any material bounce off the pullback lows at 6.9096. The cross remains over 5% lower than the recent high posted mid-June.
  • AUD/NZD continues to trade within range of one of the larger expiries rolling off at the cut today: A$1.0bln set to roll-off at 1.09 in the cross.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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