AUDUSD Trading Sideways As Focus On US Debt Talks

Aussie was one of the better performers in the G10 on Friday and is holding onto those gains at the start of Monday trading, as US debt ceiling talks continue with McCarthy and Biden due to meet on Monday. AUDUSD rose to a high of 0.6675 but finished around 0.6650. It is currently around 0.6654. The USD index fell 0.4%.

• The softer tone in AUDUSD continues and recent price action exposes key support at 0.6565, the March 10 low. Clearance of this level would confirm resumption of the bear cycle that started on February 2. Whereas a break of 0.6818 would reinstate a bullish theme.
• Aussie is down 0.3% versus the kiwi with the RBNZ in focus this week. It is currently around 1.0600. AUDJPY is down 0.2% to 91.62. Aussie is flat against the euro and +0.1% versus the pound at 0.6150 and 0.5340 respectively.
• Equity markets were mixed on Friday with the S&P down 0.1% but the Eurostoxx up 0.6%. S&P futures have started the week down 0.3% given nerves around the ongoing US debt ceiling talks. Oil prices are down 0.2% to $71.69. LME metal prices rose 0.9% on Friday to end the week down only 0.06%. Iron ore is around $105/t.
• There is no data in Australia today. The focus of the week domestically is likely to be Friday’s April retail sales.