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AUD/USD To Fresh Multi-Week Highs, Higher Commodities Helping

AUD

AUD/USD has surged higher, the pair currently at fresh session highs in the 0.6735/40 region. This is +0.75% above NY closing levels. We are comfortably above the June 27 high of 0.6721. June 22 highs at 0.6806 is the next upside target. We do have the 200-day EMA nearby at 0.6747.

  • The A$ is benefiting from broad based USD weakness, although is an outperformer in the G10 space. Earlier yen was leading the charge, but USD/JPY has consolidated somewhat. AUD/JPY has recovered back above the 94.00 level against recent lows around 93.50.
  • China stimulus talks are likely aiding sentiment at the margins. Iron ore is up further near $108/ton, while copper is also climbing +0.62% to $379 (CMX basis).
  • Coming up we have RBA Governor Lowe speaking in around 20mins.

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