AUDUSD Finishes Higher Following Post-CPI Volatility

Aussie was one of the better performers in the G10, with the yen and kiwi surpassing it. AUDUSD finished Wednesday up 0.3% after some volatility following the as expected US CPI data. It spiked to 0.6818 in the wake of the data but then dropped to 0.6746 before recovering and is now around 0.6779. The USD index fell 0.2%.

• AUDUSD is holding above the 50-day EMA of 0.6697, which is also initial support. It broke through 0.6806 on Wednesday but didn’t sustain it, a clear break would strengthen the bullish case and open up 0.6861.
• AUDNZD is down 0.2% to 1.0647. AUDJPY is 0.5% lower to 91.03. While Aussie is stable versus the euro at 0.6172 and up 0.2% against the pound at 0.5369.
• Equity markets were generally weaker with the Eurostoxx down 0.4% and the Dow Jones -0.1% but the S&P up 0.5%. The VIX was down around 1pp to 16.9%. WTI oil prices finished down 1.25% and are currently around $72.78/bbl. Copper is down 1.3% and iron ore is down to $104.75/t.
• Today the Melbourne Institute consumer inflation expectations for May print. April was 4.6%. Australian Trade Minister Don Farrell will head to China on Thursday for the first in-person meeting between the two countries’ top trade officials since 2019.