Aussie Rallies On Weaker ISM Print

Aussie rose strongly against the greenback on Wednesday to be one of the better performers in the G10. The US dollar weakened following a drop in the services ISM, including the prices component (USD index -0.4%). AUDUSD rose 0.7% to 0.6564, close to the high of 0.6570, breaking above initial resistance at 0.6556, 50-day EMA.

• The break above first resistance likely confirms that recent weakness was corrective but moving average studies remain in a bear-mode position and continue to highlight a short-term downtrend. Initial resistance is now at 0.6635, March 21 high, and support at 0.6481, April 1 low.
• AUDJPY is up 0.8% to 99.55, as the yen underperformed the G10 again. AUDNZD was steadier rising 0.1% to 1.0924 after a high of 1.0938. AUDEUR rose 0.1% to 0.6058 and AUDGBP 0.1% to 0.5188.
• Equities rallied with the S&P up 0.1% and the Euro stoxx +0.5%. Oil prices continued their April climb with Brent up 0.7% to $89.56. Copper is up 3.5% but iron ore fell below $100 and is currently around $99/t.
• Today final Judo Bank composite/services PMIs for March and February house finance data print. RBA’s Assistant Governor Jones speaks at 1050 AEDT.