AUDUSD Approaches 65c Level, CPI Data Coming Up

Aussie was one of the better G10 performers behind some of Europe. AUDUSD approached 65c following the softer-than-expected US PMI data to reach a high of 0.6490. The pair rose 0.6% to 0.6487 and is currently trading around this level. Stronger equities were also supportive of AUD. The USD index is 0.4% lower.

• AUDUSD broke through resistance at 0.6457 yesterday but gains are still considered corrective. Initial resistance is now at 0.6490, April 23 high, but the level to watch is 0.6529, 50-day EMA. Initial support is at 0.6363, April 19 low.
• Aussie is up 0.5% to 100.38 against the yen, close to the intraday high. AUDNZD trended higher through the day to reach a high of 1.0937 and is currently 0.3% higher at 1.0935. AUDEUR is up 0.1% to 0.6062 but AUDGBP is 0.2% lower at 0.5212.
• Equities rallied with the S&P up 1.2% and the Euro stoxx +1.4%. Oil prices were also stronger with Brent up 1.6% to $88.42/bbl. Copper prices are down 1.2% and iron ore is around $114/t.
• Today Q1/March CPI print and will be watched closely. Q1 headline is expected to rise 0.8% q/q and 3.5% y/y and trimmed mean 0.8%/3.8%. See MNI Q1 Inflation Forecast To Ease Substantially, Watch Services.