AUDUSD Stronger, Bullish Theme Intact

While AUDUSD finished off the intraday high of 0.6673, it was still 0.3% higher at 0.6653, close to where it was before the US PCE data. It is currently trading around 0.6654. The pair was supported by lower US yields and a pickup in equities. The USD index is fell 0.1%.

• AUDUSD’s bullish cycle that started April 19 remains intact and recent weakness is seen as corrective. Initial resistance is at 0.6680 with the bull trigger at 0.6714. A clear break of 0.6587 would signal scope for a deeper retracement.
• AUDJPY is up 0.6% to 104.68 as USDJPY rose above 157. AUDNZD is down 0.2% to 1.0829. AUDEUR 0.1% higher at 0.6130 and AUDGBP +0.2% at 0.5222.
• Equities were stronger with the S&P up 0.8% and the FTSE +0.5% but Euro stoxx was flat. Oil prices were higher with Brent down 0.6% to $81.37/bbl. LME metal prices fell 1.3% to be down 2.2% on the week. Iron ore is lower at around $113/t.
• Today final May Judo Bank manufacturing PMI and the MI inflation gauge for May print. The focus of the week is Wednesday’s Q1 GDP report.