AUDUSD Softer On Equity Sell Off

AUDUSD fell overnight in the risk off move which saw equity markets down and the USD higher (DXY +0.3%). It is currently trading around 0.6685 after reaching a high of 0.6744 overnight. It was one of the better G10 performers but didn’t outperform NZD.

• This week’s AUD softness appears to be a correction. Firm support lies at 0.6616, the 50-day EMA. A clear break of this level would signal a bearish development. Last week’s gains confirmed a resumption of the uptrend and opens 0.6909, a Fibonacci retracement.
• AUDJPY finished flat on the previous NY close and is now trading around 91.62. AUDNZD reached a high of 1.0659 overnight but then trended down the rest of the session and is now around 1.058. AUD is off its lows against EUR and GBP at 0.6388 and 0.5511 respectively.
• Equity markets were down overnight with the S&P 1.4% lower and the Eurostoxx -0.4%. VIX finished higher at 22.1%. WTI oil prices fell to a low of $73.41, a level not seen since early January, and are now around $74.30/bbl. Iron ore is steady around $108.50.
• In Australia, Q3 GDP prints today and is expected to rise 0.6% q/q. This is followed by November trade data in China.