AUDUSD Unwinding Friday’s Weakness Following Biden Decision

Aussie underperformed on Friday as weak equities and the stronger US dollar (+0.2%) impacted risk-sensitive currencies. AUDUSD fell 0.3% to 0.6685, close to the low of 0.6680, but has started today higher following Biden’s announcement that he is no longer standing for re-election and endorsed VP Harris. The pair is up 0.3% to exceed 0.6700 at 0.6702. The USD index is down 0.2%.

• AUDUSD bullish conditions remain intact and moves lower appear corrective. Firm support at 0.6712, 20-day EMA, was broken and 0.6700 breached on Friday. This opens 0.6666, 50-day EMA. Initial resistance is at 0.6799, July 11 high.
• AUDJPY was down 0.2% on Friday to 105.30 after a low of 105.17. The pair is currently steady at 105.35. AUDNZD rose 0.3% to 1.1123 and has started today slightly lower at 1.1119.
• AUDEUR fell 0.2% to 0.6143 and is now around 0.6148. AUDGBP is down 0.1% to 0.5176 and is currently trading at 0.5180.
• Equities were weaker on Friday with the S&P down 0.7% and the Euro stoxx -0.9%. The S&P e-mini is 0.3% higher though after Biden’s decision. Oil prices fell sharply with Brent down 3% to $82.56/bbl. LME metal prices fell 1% on Friday to be down 5.6% on the week. Iron ore is around $104-105/t.
• It is a quiet week in Australia with only preliminary July Judo Bank PMIs printing on Wednesday.