AUDUSD Hovering Around Key Support Level

AUDUSD weakened with the rest of the G10 after the robust US jobs report, which saw unemployment fall 0.2pp to 3.5% and US bond yields rise in response. The DXY rose 0.4% to be 0.56% higher on the week. AUD was a mid-G10 performer (-0.48%) with the pullback in risk appetite hurting GBP (-0.68%) and NZD (-0.88%) more.

• AUDUSD is now trading slightly higher at 0.636, just below its initial support level of 0.6363 and bear trigger. The next focus is 0.6337 – the 24 April 2020 low.
• Equity markets were sharply lower in the US and also down across Europe with increased expectations of Fed tightening. The VIX also jumped to 31.4%.
• Oil prices soared with WTI +4.7% to $92.64 and Brent approaching $100 again, as the market continued to rally on the OPEC+ cuts to production announcement. WTI rose 17.2% on the week. But metals were broadly lower on Friday due to weaker risk sentiment. Iron ore has been stable in the $95-$96 range.
• It is likely to be a quiet day with Japan, Canada and the US all closed for holidays. The focus of the week in Australia will be the survey data covering consumers, businesses and inflation expectations. In the US, FOMC minutes are published Wednesday and September CPI Thursday.