AUDUSD Holds Onto Wednesday’s Gains Helped By Stronger Equities

AUDUSD has traded in a narrow range during today’s APAC session. It fell to a low of 0.6516 following the weaker-than-expected trade and building approval data but then rebounded to a high of 0.6539 as the Hang Seng rallied. The pair is now up 0.1% to 0.6530. The USD index is 0.3% higher.

• Australia’s merchandise trade surplus unexpectedly narrowed to $5.02bn in March from the downwardly-revised $6.59bn due to weak export growth while import growth remained strong.
• Total building approvals rose a lower-than-expected 1.9% m/m in March to be down 2.2% y/y after falling an upwardly revised 0.9% and 5.3% respectively.
• AUDJPY has rebounded somewhat following Japan’s assumed intervention to support the yen. It is up 1.1% to 101.83 after a high of 102.05.
• AUDNZD is up 0.2% to 1.1019 and has spent most of the session above 1.1000. It is off its high of 1.1028. Aussie is 0.1% stronger versus the euro and pound at 0.6094 and 0.5211 respectively.
• Equities are mixed with the ASX up 0.4% and Hang Seng +1.9% but the KOSPI is down 0.2%. China is still closed. The S&P e-mini is 0.5% higher. Oil prices are higher after falling sharply yesterday. WTI is +0.6% to $79.45/bbl. Copper is up 0.4% and iron ore is higher at around $117/t.
• Later US Challenger job cuts, Q1 productivity/ULC, March final durable orders and jobless claims print. The ECB’s Lane speaks and European April manufacturing PMIs are released.