AUDUSD Higher As Slower US Hikes Signal Boosts Risk Appetite

The AUD was one of the better performers in the G10 overnight versus the USD, as the USD weakened on weaker PMI and unemployment claims data and the FOMC minutes pointed to a smaller hike in December. AUDUSD is currently trading close to its overnight high around 0.6730 +1.2%.

• AUDUSD broke through initial resistance and the November 18 high of 0.6730 late in the session. The next level to watch is 0.6797 which is the bull trigger. Trends remain bullish and the latest pullback is looking corrective. Initial support is at 0.6585.
• AUDNZD reached a new low for the day overnight at 1.0748 after the RBNZ hiked rates 75bp yesterday. It has started the day up a bit from there around 1.078. AUDJPY is off of its overnight lows and has risen to close to 94.00. AUD is up against the euro at 0.6478. AUDGBP was down overnight reaching a low of 0.5555 but has recovered somewhat to 0.5585.
• Equity markets were broadly higher as the Fed minutes improved risk appetite. The S&P 500 rose 0.6% and the Eurostoxx +0.4%. VIX was almost a percentage point to 20.4%.
• Oil prices fell sharply with WTI going from a high of $81.95 to finish at $77.37 after Covid-related demand fears gained traction and news that the EU was discussing a softer price cap on Russian oil of $65-70/bbl, potentially having minimal impact. Copper prices rose 0.8% and iron ore is trading close to $95.50.
• A quiet day today with no events scheduled in Australia and the US closed for Thanksgiving. There is the German IFO in Europe and the ECB meeting accounts plus a number of ECB speakers.