AUDUSD Breaks Below 65c, GDP Coming Up

AUDUSD fell to below 65c reaching a low of 0.6478 pressured by weaker equities. It was trending higher when it was boosted by the weaker-than-expected US services PMI to 0.6521. The pair has trended towards 65c since on the back of the S&P sell off and is now down 0.1% to 0.6505 and one of the G10 underperformers with other commodity currencies. The USD was slightly lower.

• AUDUSD has traded through last week’s lows reinforcing the bearish theme and approaching the bear trigger at 0.6443, February 13 low. Key resistance is at 0.6595, February 22 high.
• Aussie is down 0.5% against the yen to 97.54 after a low of 97.43. AUDNZD is approaching 1.07 and is currently at 1.069. It fell to 1.0665 late in yesterday’s APAC session. AUDEUR is down 0.1% to 0.5991 after falling to 0.5972 early in European trading and AUDGBP -0.2% to 0.5119.
• Equities were generally weaker with the S&P down 1% and the Euro stoxx -0.4% but the FTSE +0.1%. Oil prices continued falling with Brent down 0.9% to $82.06/bbl. Copper is down 0.3% and iron ore is around $116/t.
• Today Australia’s Q4 GDP prints with consensus forecasting a 0.2% q/q rise but there are upside risks to projections from net exports but downside from inventories.