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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
AUD
AUD/USD is the weakest performer within the G10 space, down 0.4% so far, to sit under 0.6720. Most other majors are weaker against the USD, with the exception of yen, which has outperformed amid some risk aversion in the regional equity space, and a higher than expected core CPI print. AUD/JPY is retreating off recent highs, back sub 90.00. The pair is currently testing the simple 50-day MA.
- Also likely weighing on the A$ is weaker iron ore prices, which are slumping, the active Singapore contract off by over 5%. Reports of a weaker demand backdrop weighing (see this link).
- The MNI policy team noted earlier in the week that demand should improve though in the second half (see this link).
- A$ correlations have not been that strong with iron ore of late, see the chart below, but it's difficult to see the recent correction as positive. As we noted earlier, CMX copper is right on its simple 100-day MA in terms of downside support.
- For AUD/USD, dips sub 0.6700 have been supported this past week, while the April 10 low comes in at 0.6220.
Fig 1: AUD/USD Versus Iron Ore
Source: MNI- Market News/Bloomberg
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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