AUDUSD Testing Support As Greenback Stronger Following Friday’s Robust Data

AUDUSD range traded during the start of the APAC session but then sank as Asian traders reacted to Friday’s stronger-than-expected US data thus pushing up the greenback. The pair is now down 0.3% from the previous close to 0.6557, with weaker HK/China equities weighing more recently. It is close to the intraday low but holding above the 20-day EMA at 0.6553. The USD index is 0.1% higher.

• Aussie weakness is also seen versus European currencies with AUDEUR down 0.4% to 0.6090 and AUDGBP -0.3% to 0.5226. AUDJPY is flat at 95.39, off the high of 95.61. AUDNZD has been range trading and is down 0.1% to 1.0727.
• APAC equity markets are mixed at the start of the week with the ASX up 0.1% and the Nikkei +1.6% but the Hang Seng -1.2% and the CSI 300 -1.3%. The S&P e-mini is flat. Oil prices have continued Friday’s move higher with Brent up 0.3% to $76.06, close to the intraday high. Copper is down 0.3% and iron ore is down to $134-135/t.
• The calendar is very light today with only US NY Fed 1-year inflation expectations. The focus of the week will be on Tuesday’s US CPI and Wednesday’s Fed decision with the ECB following on Thursday.