AUDUSD Higher Again After Post-Risk Off Fall

AUDUSD fell sharply earlier to a low of 0.6351 but has bounced back to be down only 0.1% to around 0.6358. The bear trigger is at 0.6286. A risk-off move driven by the cancellation of US President Biden’s trip to Jordan plus an escalation in tensions in the Middle East hit the Antipodean currencies. The USD index is off its peak but still 0.1% higher.

• AUDNZD is up slightly to 1.0797. AUDJPY is 0.2% lower at 95.20 but off the intraday low of 95.12. Both AUDEUR and AUDGBP are steady at around 0.6016 and 0.5225 respectively.
• Equity markets are generally lower with the CSI 300 down 0.4% and the S&P e-minis -0.3% but the ASX 0.1% higher. Oil prices are stronger in the wake of the latest Israel developments with Brent up 2% to $91.66/bbl. Copper is 0.4% higher and iron ore is around $118.50/t.
• China September data are coming up. Later there are numerous Fed speakers including Waller, Williams, Bowman, Barkin, Harker and Cook plus the release of the Beige Book. In terms of data, there are US housing starts/permits and UK CPI. ECB’s Lagarde is also scheduled to speak.