AUDUSD Weakens Towards Support, Employment Data Coming Up

Aussie was one of the weakest G10 currencies versus the greenback on Wednesday. AUDUSD reached a low of 0.6750 as it approached support at 0.6746, the lowest since July 12. It is currently trading around 0.6769. The USD index strengthened 0.35%.

• Despite last week’s AUDUSD rally now having unwound, the short-term bullish theme remains. Resistance is at 0.6900. A break of support at 0.6746, the 20-day EMA would open up losses toward 0.6712, 200-dma.
• AUDNZD fell 0.4% to 1.0814. After an intraday low of 1.0793 following NZ CPI data, it then reached a high of 1.0885 but couldn’t sustain breaks above 1.0880. AUDJPY is 0.1% lower at 94.50. AUDEUR is down 0.4% to 0.6044 and AUDGBP is 0.2% higher at 0.5233.
• Equity markets were mixed with the FTSE rallying 1.8% on lower-than-expected inflation, the S&P up 0.2% but the Eurostoxx fell 0.2%. VIX rose to 13.75%. Oil was down slightly with Brent -0.1% to $79.55/bbl. Copper fell 0.4% but is off its lows and iron ore is higher at $114.50/t.
• Today June labour market data print and modest job gains are expected (see MNI June Employment Expected To Post Modest Rise). There is also the Q2 NAB business survey.