Risk Appetite Weighing On A$, Still Falling

Aussie fell on the weaker-than-expected retail sales print but recovered immediately but falling Asian equities have weighed on it since then. AUDUSD is down 0.4% to 0.6680, close to the session low of 0.6677. Support is at 0.6651, the July 11 low. The USD index is flat.

• AUDJPY is down 0.6% to 93.00. AUDNZD is down 0.3% to 1.0822. AUDEUR is 0.5% lower to 0.6084 and AUDGBP -0.4% to 0.5220.
• Retail sales fell 0.8% m/m in May compared with expectations of no change. See MNI Discounts Don't Entice Shoppers In June.
• Equity markets are lower today with the ASX down 1%, the Nikkei -1.4% ahead of the BoJ decision and the Hang Seng -0.5% but CSI 300 is flat. S&P e-minis are up 0.1%. Oil is also lower on the pull back of deteriorating risk appetite with WTI down 0.6% to $79.64/bbl. Copper is 0.3% lower and iron ore has fallen sharply to $108/t.
• Coming up is the BoJ decision and then later the US Q2 employment cost index, June spending/income including core PCE deflator, and final Michigan consumer survey for July print. There are also preliminary German Q2 GDP and European Commission July survey data.