AUD/USD Supported Sub 0.6600, House Price Growth Moderating

AUD/USD slipped modestly for Thursday session, off 0.15%, amid volatile post Asia close trade. The A$ only underperformed CAD and NZD in the G10 space though, amid a broader USD recovery (BBDXY +0.41%). AUD/USD saw a low of 0.6571 in NY trade, but was back to 0.6605/10 by the close, which is where we currently track.

• Softer headline US data was brushed aside with some firmer underlying details supporting the greenback. US cash Tsys sit 5.5-8.5bp cheaper for Thursday. The EU currencies and yen were the underperformers.
• Elsewhere in the cross asset space, there was a slightly firmer equity backdrop for major indices (ex Nasdaq), but commodity indices slipped for the Bloomberg aggregate index (-0.51%) and metals as well (-0.57%). Iron ore sits under $129/ton, just under recent highs.
• The technical backdrop remains positive for AUD, despite losing some momentum in recent sessions. Resistance is at 0.6676, the Nov 29 high, while the 20-day EMA sits at 0.6516 on the downside.
• On the data front we have Manufacturing PMI final revisions for Nov. Earlier Nov core logic house prices rose 0.6% m/m, showing an easing trend, but we are still up 8.2% y/y.
• China is also reportedly reviewing tariffs on Australian wine (see this BBG link).