AUDUSD Briefly Above Bull Trigger, Capex Data Coming Up

The US dollar was stronger on Wednesday after significant weakening as yields were slightly higher (USD BBDXY +0.35%). AUDUSD was 0.1% lower to 0.6785, unwinding all of the post-CPI bounce, and off the intraday low of 0.6764 as US equities recovered at that point too. Aussie outperformed most of the G10 with only CHF doing better.

• The higher-than-expected July CPI print drove AUDUSD up to 0.6813, a new cycle high and above the bull trigger at 0.6799. It is currently trading around 0.6786, below that key level but a clear break would strengthen the bullish theme. Initial support is at 0.6697.
• AUDEUR rose 0.4% to 0.6100 as soft monetary data weighed on the euro. AUDGBP is up 0.4% to 0.5143. AUDJPY is 0.2% higher at 97.97. AUDNZD was unable to hold the break above 1.09 during the APAC session and is flat at 1.0864.
• Equities were mixed with S&P down 0.6% but Euro stoxx up 0.3%. Oil prices fell further with Brent down 1.6% to $77.58/bbl. Copper fell 2.2% and iron ore around $101/t.
• Q2 capital expenditure prints today and is forecast to rise 1% q/q, in line with Q1.