AUD/USD Recovery Extends Further, Tracking As The Best G10 Performer In The Past Week

AUD/USD sits just below session highs in recent dealings. The pair around 0.6340, +0.30% firmer versus NY closing levels from Thursday. It is outperforming within the G10 space, with NZD the next best performer at +0.15%.

• The 20-day EMA isn't too far away (just above 0.6350). Earlier highs in the week came in around 0.6400, while the 50-day EMA is near 0.6410.
• AUD/USD still looks too low relative to the improve yield momentum backdrop in light of firmed RBA hike expectations in November. Offsets have come from a still generally softer metals price backdrop and risk aversion in the global equity space. Equity sentiment is tracking better today though.
• The A$ is the best performer in the G10 over the past week. Indeed, it is the only currency tracking up against the USD at this stage (+0.40%, against SEK -1.6%, NOK -1.1%, CHF -0.80%).
• Looking ahead in terms of the data calendar, Monday delivers the Sep retail sales print. The market looks for a 0.3% m/m rise (prior was 0.2%).