AUDUSD Stronger Again But Can’t Hold Break Above 68c

Aussie outperformed most of the G10 again on Monday and AUDUSD rose a further 0.5% to 0.6781, highest since mid-April, as the more positive risk tone persisted. It reached a high of 0.6804 earlier but couldn’t hold above 0.6800. The USD index was 0.2% higher.

• AUDUSD is currently trading at its 100-day simple moving average. It approached key resistance of 0.6806 but didn’t break through. There’s a large option expiry at 0.6900 on Wednesday which could be supporting the Aussie. On the downside, initial support is at 0.6709, the 50-day EMA.
• AUDNZD broke through 1.0700 and is down 0.3% to 1.0693. Aussie is 0.6% stronger versus the yen at 91.59. AUDEUR is up 0.6% to 0.6163 and AUDGBP +0.6% to 0.5375.
• Equity markets were generally higher with the S&P up 0.1% and the Eurostoxx +0.2% but the DAX down 0.1%. WTI oil prices rose 2.2% to $72.94/bbl. Copper rose 1% and iron ore is higher at $106.60/t.
• Today CBA April household spending intentions, May Westpac consumer confidence and Q1 retail sales volumes are all released. Real retail sales are expected to fall 0.6% after -0.2% in Q4.