Frydenberg's Pre-Budget Comments Do The Rounds

Firmer commodity markets put a bid into the Aussie Wednesday, helping it shake off earlier weakness linked to an underwhelming Australian CPI data. AUD/USD recouped neutral levels by the WMR fix and extended gains thereafter as Fed Chair Powell poured cold water on Fed tapering chatter.

• Australian Treasurer Frydenberg told ABC that the gov't would like to see the jobless rate fall below 5%, which should start driving wages and inflation higher. He suggested that the gov't will continue providing targeted stimulus to achieve this goal.
• Frydenberg is set to deliver a pre-Budget speech on the gov't's fiscal strategy later today. The local media have circulated snips from his upcoming address, with the treasurer set to rule out any "sharp pivots towards austerity."
• Perth-based Fortescue reported a 9% decline in iron ore shipments in Q1, although the 42.3mn tons figure still beat estimates of 41.9mn tons.
• On the data front, Australia's Q1 terms of trade hit the wires today, before Friday's PPI & private sector credit take focus.
• AUD/USD has punched through yesterday's high of $0.7801 before pulling back towards that level. It last sits right there, 10 pips better off on the day.
• A break above Apr 20 high of $0.7816 would turn topside focus to Mar 18 high of $0.7849. Meanwhile, bears look for a dip through Apr 22 low of $0.7691, a key near-term support.