AUDUSD Yet To Break Key Resistance, July CPI Coming Up

Aussie rose 0.3% against the US dollar but still underperformed most of the G10 as the greenback fell on lower Treasury yields (USD BBDXY -0.1%). AUDUSD is currently around 0.6792 after a high of 0.6796. Moderately higher equities were also AUD supportive.

• AUDUSD is yet to break above key resistance at 0.6799 but the bull cycle remains in place. Initial support is at 0.6697.
• AUDNZD trended lower through Tuesday breaking below 1.09 and is now down 0.5% to 1.0865. AUDJPY is 0.2% lower at 97.65, close to the intraday low. AUDEUR is 0.1% higher at 0.6073 while AUDGBP is down 0.2% to 0.5122.
• Equities were moderately higher with the S&P up 0.2% and FTSE +0.2% but Euro stoxx flat. Oil prices corrected with Brent down 1.9% to $79.85/bbl. Copper rose 0.4% and iron ore is around $102/t.
• Today July CPI prints but will be difficult to read with government cost-of-living measures impacting the headline and most services components not updated. Bloomberg consensus expects a moderation to 3.4% from 3.8%. Q2 construction work is also released and forecast to rise 0.7% q/q.