AUDUSD Breaks Below Key 65c-Level, Now Trading Around This Point

Aussie is underperforming in an environment of US dollar strength and weakening equities. On Friday AUDUSD reached a peak of 0.6610 pre-US payrolls and during today’s APAC broke below 65c, a Fibonacci retracement level, to a low of 0.6486. It has recovered somewhat and is currently down 0.15% to 0.6502. Recent moves are reinforcing the bearish trend in AUDUSD. The USD index is 0.2% higher after Powell comments that rate cuts are unlikely until mid-year and is 0.8% higher since Thursday.

• AUDJPY is down 0.1% to 96.53 but off the intraday low of 96.42. AUDNZD is down 0.1% to 1.0733 after a low of 1.0717. Aussie is down 0.1% against the euro at 0.6033 and little changed versus the pound at 0.5156.
• A$ ignored the slight narrowing in the December trade surplus and moderation in the MI inflation gauge in January.
• Equities are selling off with the ASX down 0.9% and the Hang Seng down 1.0% but the Nikkei is up 0.3%. The S&P e-mini is down 0.3%. Oil prices are steady with WTI at $72.30/bbl. Copper is slightly higher and iron ore is trading around $127-128/t.
• Later the Fed’s Goolsbee and Bostic speak. On the data front there are US/European January services ISM/PMIs. The focus for Australia on Tuesday will be the RBA decision, updated staff forecasts and Governor Bullock’s press conference.