AUDUSD Finds Support At 68c, Big Gains Versus Kiwi

Aussie zigzagged sideways on Tuesday to finish little changed against most currencies except kiwi. AUDUSD is currently around 0.6812, off the intraday low of 0.6789. The USD index is 0.1% higher.

• Breaks below 0.6800 for AUDUSD were brief as the level provided support. Initial and key resistance is at 0.6900, June 16 high, and a break of this would open 0.6936, February 16 high. Initial support is at 0.6784, July 13 low.
• Aussie rose sharply against the kiwi, as the latter was the worst G10 performer. AUDNZD rose 0.7% to 1.0853, ahead of today’s Q2 NZ CPI, which is not expected to shift the RBNZ from its neutral stance. AUDJPY is steady at 94.55 after it bounced back from its low of 93.78. AUDEUR is around 0.6065 and AUDGBP +0.2% to 0.5224.
• Equity markets rallied with the S&P up 0.7% and the Eurostoxx +0.3%. VIX was 13.3%. Oil made up Monday’s losses with Brent rising 1.7% to $79.82/bbl. Copper fell 0.3% and iron ore is lower at around $113.50/t.
• Today the Westpac leading index for June prints. The indicator has fallen for 10 consecutive months.