Back To Late Jan Highs, Global Equity Rebound Aids Sentiment

AUD/USD tracked higher for much of Thursday's session. We reached highs of 0.6625 by NY trade. This is right back to late Jan highs in the pair. In the G10 space AUD gains (+0.82%) were only bettered by JPY and NOK. Broader USD sentiment was weaker again, the BBDXY down 0.44% to 1231.0.

• Global equity sentiment was buoyant in US and EU markets through Thursday trade (SPX +1% to fresh record highs). We also had lower US yields, particularly at the front end (2yr off 5bps to 4.50%). Aiding the yield move was a partially dovish read of Powell's comment that the Fed is “not far from confidence needed to cut rates" and partially on the poorer-than-expected weekly jobless claims.
• These factors helped AUD gains. Commodity indices were also higher, +1.3% for the Bloomberg sub metals index, +0.4 4% for the aggregate index. Iron ore has edged away from recent highs though, last back under $116/ton.
• For AUD/USD we sit very close to early Jan highs, a clean break above 0.6625 could see 0.6657, then 0.6708 targeted, which are both technical retracement levels. The Jan 12 high is at 0.6729. The 20-day EMA is back at 0.6534.
• The local data calendar is empty today. Things don't ramp up until next Tuesday, when NAB business conditions are out and the RBA's Assistant Governor (Economic) Hunter appears on a panel discussion.