AUDUSD Tests 67c On Risk Pullback, RBA Likely To Hold Today

AUDUSD tested 67c early in the APAC session yesterday but then trended lower until it tested 66c during US trading reaching a low of 0.6605. The pair was down 0.8% to 0.6619. Aussie was one of the worst performers in the G10 as risk appetite deteriorated. The USD index rose 0.4%.

• The drop in AUDUSD yesterday is seen as corrective as last week’s rally reinforced the current bullish trend. Initial support is at 0.6539, 20-day EMA, and resistance is 0.6691, December 4 high.
• Aussie fell 0.6% to 97.43 against the yen. AUDNZD was more stable down only 0.1% to 1.0736 as both currencies are risk sensitive. AUDEUR is 0.4% lower at 0.6108 and AUDGBP -0.3% to 0.5239.
• Equity markets sold off with the S&P down 0.5% and the Euro stoxx -0.1%. VIX was higher at 13%. Oil prices fell again with Brent down 0.8% to $78.22/bbl. Copper is 2.7% lower and iron ore is just below $130/t.
• The RBA decision is announced at 1430 AEDT today and rates are widely expected to be left at 4.35% (see MNI RBA Preview). Before then Q3 current account and final November Judo Bank composite/services PMIs print.