Back Sub 0.6600, But Outperforms Boarder USD Rebound, RBA Stability Review Out Today

Like elsewhere, the AUD/USD faltered post the Asia close Thursday, falling back to 0.6560/65 from earlier highs at 0.6635. We lost around 0.25% for yesterday's session, so a relative outperformer in the G10 space, which along with yen, were the smallest drops recorded against the USD (BBDXY +0.44%, DXY +0.60%). Current spot levels are very close to the 50-day EMA, near 0.6570. Mar 19 lows were at 0.6504.

• Carry over strength from yesterday's sharp drop in the unemployment rate likely helped the AUD. Yield differentials remain up from recent lows for AU-US government bond yield spreads. Front end US yields firmed through US Thursday trade on better jobless claims data and signs of sticky inflation pressures in PMI survey.
• Elsewhere in the cross asset space we had positive equity rises for EU and US markets. The SPX did finish slightly below fresh record highs.
• For commodities, aggregate Bloomberg indices were up for the headline and metals (+0.50%). This was the first rise this week for the metals index. Copper is near $406 (CMX), while iron ore sits under $109/ton, slightly lower versus recent highs.
• Coming up locally today the data calendar is empty but we do have the RBA financial stability review this morning.
• In the option expiry space, note the following for NY cut later: $0.6500(A$1.1bln), $0.6550(A$874mln), $0.6650(A$1.7bln), $0.6750(A$2.6bln), $0.6825(A$2.6bln)