AUDUSD Breaks Out Of Its Recent Range And Through 63c

Aussie underperformed the G10 except for NOK and AUDUSD fell 1%, impacted by the continued pullback in risk as US yields rose further and equities sold off. The pair broke below 0.6300 a number of times in European/NY trading but those moves were not sustained. It is currently around 0.6302 after reaching a low of 0.6286 earlier. The USD index rose 0.2%.

• AUDUSD broke out of its recent range signalled by the breach of the bear trigger at 0.6331. This confirms the resumption of the downtrend begun in February. The next level to watch is 0.6287, a Fibonacci projection. Initial resistance is at 0.6422, 20-day EMA.
• Aussie is down 1.5% against the yen to 93.92, the lowest since mid August. AUDNZD was less brutal falling only 0.3% but broke 1.07 and is currently around 1.0669, very close to the intraday low of 1.0664. The RBNZ is also expected to hold rates today. AUDEUR is down 0.9% to 0.6022 and tested 0.6000 with the low at 0.6008. AUDGBP fell 0.9% to 0.5218.
• Equity markets sold off with the S&P down 1.4% and the Euro stoxx -1%. The VIX rose 2pp to 19.8%. Oil prices stabilised with Brent returning above $90 to close at $91.01/bbl. Copper prices fell 0.7% and iron ore continued its downtrend and is around $118/t.
• Today the final September Judo Bank composite and services PMIs print.