Range Trading Ahead of US CPI Data Later
The AUD has range traded versus the USD close to the overnight low and is now trading around 0.6420. AUDUSD was lower as RBA Deputy Governor Bullock spoke, but the broader USD trend was slightly firmer, so difficult to say the market reacted to Bullock's comments (see summary here).
- AUD has lost ground against JPY falling to around 93.85, as the risk off theme persisted. It is also down versus EUR at 0.6405. AUDNZD has been range trading between 1.092 and 1.094. But was higher against GBP rising to 0.5662.
- Equity markets were down across the region, following the northern hemisphere, but Australia is one of the better performers with the S&P/ASX200 down 0.3%. US e-minis are slightly higher on the session heading into the US CPI report later.
- Commodities appear to be in a holding pattern ahead of the US data, WTI is trading sideways between $85.50 and $86/bbl, iron ore is up $1 to $87.50 and copper prices are slightly lower.
- The focus of the US session will be October inflation data. Headline US CPI is expected to moderate to 7.9% y/y and core only slightly to 6.5%.