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Softer Commodities/Equities Send The A$ To Session Lows

AUD

AUD/USD is around session lows, close to 0.6280 currently. This is -0.15% below NY closing levels, with an overall range of close to 40pips for the session so far.

  • Commodities are tracking lower, with iron ore futures at fresh YTD lows, back to the low $91/tonne region. China hot-rolled coil and steel rebar futures are also off by more than 1% today and threatening fresh lows.
  • As we noted yesterday, A$ correlation with commodities, particularly with iron ore, aren't that strong at the moment, but today's moves will no doubt be impacting sentiment to a degree.
  • Headwinds to the China growth outlook appear to be driving sentiment. Onshore equities are lagging the rest of region, with the Shanghai Composite property sub-index down modestly, despite the Securities Times reporting more cities in China have cut mortgage rates.
  • Regional equities are comfortably off earlier highs as well, giving up solid gains from the open, which has weighed on the A$ as well.

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