AUDUSD Sinks Following US CPI Data, MYEFO Coming Up

Aussie underperformed the G10 on Tuesday with most currencies rising against the greenback but not the AUD. AUDUSD is down 0.1% to 0.6560. The pair spiked to 0.6612 following the US CPI data but then sank to 0.6540. The USD index is 0.3% lower with attention now on today’s FOMC decision and forecasts.

• AUDUSD broke below 0.6556, 20-day EMA, yesterday but is now trading just above this level. A clear break would open 0.6501, 50-day EMA. But at the moment, moves lower are corrective as the uptrend remains intact. The bull trigger is at 0.6691, December 4 high.
• Aussie is down 0.6% against the yen at 95.45. AUDNZD has broken below 1.07 and is at 1.0696, close to the intraday low. AUDEUR is down 0.4% to 0.6076 and AUDGBP -0.2% to 0.5221.
• Equity markets were mixed with the S&P up 0.5% but the Euro stoxx down 0.1% and the FTSE flat. Oil prices more than unwound the gains of the last few days with WTI down 3.6% to $68.77/bbl. Copper is up 0.4% and iron ore is around $135/t.
• Late this morning the government’s Mid-Year Economic and Fiscal Outlook (MYEFO) is published with Treasurer Chalmers giving a press conference. This afternoon CBA’s household spending insights print.