Lower US Yields Support A$, RBA’s Bullock Speaks Later

Aussie was one of the better G10 performers on Monday as the USD index lost 0.5% as US yields fell. AUDUSD rose 0.3% to 0.6336, off the intraday high of 0.6349. It fell below 63c early in the European session and reached a low of 0.6289.

• The bear trigger remains at 0.6286 and a clear break of this would confirm a resumption of the downtrend. Initial resistance is at 0.6393, the October 18 high.
• Aussie is 0.3% lower versus the euro and pound at 0.5939 and 0.5176 respectively. Both pairs are close to their intraday lows. AUDNZD is 0.1% higher at 1.0834. AUDJPY is up 0.25% to 94.85.
• Equity markets were generally mixed with the S&P down 0.2%, the FTSE -0.4% but the Euro stoxx up 0.4%. Oil prices fell around 2% with Brent closing at $90.44/bbl. Copper is 0.5% higher and iron ore down to around $112/t.
• Today preliminary October Judo Bank PMIs print. Later RBA Governor Bullock speaks on “Monetary Policy in Australia: Complementarities and Trade-offs” at 1900 AEDT.