Aussie Stronger As Risk Appetite Returns

The Aussie was one of the better performers versus the greenback on Friday driven by better risk appetite. AUDUSD fell to a low of 0.6693 following the better-than-expected US employment data but then rose to a high of 0.6757 as the downward revisions to previous payrolls weighed on the US dollar. It is currently trading close to the high at around 0.6751 The USD index finished 0.1% lower.

• AUDUSD cleared resistance at the 50-day EMA on Friday and opened up 0.6772, the April 20 high. Key support is at 0.6565, the March 10 low.
• Aussie is up against the major crosses with AUDJPY 1.4% higher to 91.14, the highest since May 2 when the RBA met. AUDNZD is up 0.6% to 1.0718. AUDEUR is 0.8% higher to 0.6128 and AUDGBP +0.4% to 0.5346.
• Equities were higher on Friday with the S&P up 1.9% and the Eurostoxx +1.3%. The VIX fell almost 3pp to 17.2%. Oil prices recovered somewhat with WTI rising 4% and closing above $70 at $71.34/bbl. It is higher again at the start of APAC trading at $71.68. LME metal prices fell through the week but rose 1.4% on Friday. Iron ore is higher at $102.75/t.
• Today the April NAB business survey and March building approvals are released with the latter expected to rise 3% m/m after 4% in February.