Commodity Rally Pause Hits High Beta Currencies

AUD is bottom of the G10 pile so far, dropping from the Asia open despite a slightly softer greenback as the commodity rally stalls, while softer data in the form of Westpac consumer confidence figures have also weighed on AUD with the reading falling 1.5% M/M.

• In Japan focus returns to PM Kishida's Q&A with lawmakers resumes ahead of the dissolution of legislature slated for tomorrow. USD/JPY is holding near multi-year highs which is keeping the RSI in overbought territory. Data showed core machinery orders fell 2.4% compared to an expected rise of 1.4%.
• In the US the House voted to raise the debt cap, sending the bill to Biden for Presidential assent. Looking ahead focus turns to the unofficial beginning of the quarterly earnings cycle, with JPMorgan and Blackrock both due. US CPI is the data highlight, with prices expected to have risen by 0.3% on the month, keeping the annual pace a 5.3%. The Fed minutes also cross, with markets watching for any considerations of a November taper of asset purchases.