Risk Pullback Brings A$ Below 200-dma

Aussie underperformed the G10, even kiwi, on Wednesday as the pullback in risk weighed on the commodity currency. Weak metals and iron ore have also pressured AUD. Following the Asian session, AUDUSD oscillated around 66c but then fell to a low of 0.6578. The pair is currently down 0.5% to 0.6582. The USD index is off its lows but little changed.

• AUDUSD has now moved below the 50-day EMA, 50- and 200-day moving averages, which is bearish. Key support is at 0.6576, just above Wednesday’s intraday low. Initial resistance is at 0.6799, July 11 high.
• AUDJPY continued correcting falling 1.7% to 101.15, the lowest since early May. The pair trended lower through the day as flight to quality supported the yen. The pair sank to a low of 101.05.
• AUDNZD is down slightly around 1.11. It moved lower during the European session and then oscillated around 1.11.
• AUDEUR is down 0.4% to 0.6071, close to the low, while AUDGBP is -0.5% to 0.5099, lowest since September last year.
• Equities were sharply lower with the S&P down 2.3% due to disappointing earnings and Euro stoxx -1.1%. Oil prices were higher though with Brent up 0.6% to $81.50/bbl. Copper fell 2%, eighth consecutive decline, while iron ore broke below $100/t.
• There are no data or events in Australia today.