AUDUSD Trending Higher, Wages Data Coming Up

AUDUSD rose to a peak of 0.6579 as lower US Treasury yields drove the greenback down. The pair then trended lower on weaker equity sentiment to be up 0.1% on the day at 0.6550. It is now up 1.5% since last Tuesday. The USD index is down 0.1%.

• The latest recovery in AUDUSD is still seen as corrective at these levels. Initial support is at 0.6443 and key resistance at 0.6625.
• AUDNZD trended lower through the European/NY sessions reaching a low of 1.0614. It is currently down 0.1% to 1.0625. AUDJPY is 0.1% higher at 98.25. AUDEUR is down 0.1% to 0.6060 and AUDGBP slightly lower at 0.5190 after an intraday high of 0.5210.
• Equities were generally lower with the S&P down 0.6% and the Euro stoxx -0.1% but France’s CAC 40 up 0.3%. Oil prices were lower with Brent down 1.3% to $82.50/bbl. Copper rose 0.5% but iron ore couldn’t find support from China’s rate cut and is down to $119.50/t.
• Today Q4 WPI prints and is forecast to rise 0.9% q/q and 4.1% y/y. The January Westpac leading index is also out.