Risk Pull Back Weighs On Aussie

Weaker risk appetite is weighing on Aussie in APAC trading with AUDUSD down 0.2% to 0.6534, close to the intraday low of 0.6526. The USD index is 0.1% higher. Fitch put the US on negative credit watch and Treasury yields have risen in response.

• AUDNZD is flat at 1.0710 after reaching an intraday high of 1.0736 following Wednesday’s surprise RBNZ move to neutral. It was at 1.0568 before the announcement. Aussie is down 0.1% against the yen to 91.17. AUDEUR is 0.1% lower at 0.6079 and AUDGBP -0.1% to 0.5289.
• Equity markets across the region are generally lower with the ASX down 0.9%, the Hang Seng -1.7% but the Nikkei up 0.6%. The S&P e-minis are also higher up 0.4%. Oil has been volatile but is barely changed with Brent around $78.40/bbl. Copper is 0.4% higher and iron ore is just under $97/t, on China demand concerns.
• Fed’s Barkin and Collins speak later. There are also revised US and German Q1 GDP data, and US jobless claims and Chicago/Kansas Fed indices. Australian retail sales for April print on Friday and are expected to rise 0.3% m/m.