Strong USD Rise Weighs On Aussie, Technicals Remain Bullish

AUDUSD fell 0.8% to 0.6759 after a high of 0.6839 in Asian trading. The move was driven by US dollar strength with the USD index up 0.9% and all G10 currencies closing lower against it, but Aussie was one of the better performers. The US dollar was boosted by stronger yields and weaker equities.

• AUDUSD has broken through initial support of 0.6773 and the next level to watch is 0.6714, 20-day EMA. But technicals continue to signal bullish trend conditions and so pullbacks like yesterday’s are seen as corrective. 0.6900 is key resistance.
• AUDNZD traded most of Tuesday above 1.08 to be up 0.4% to 1.0815 after a high of 1.0832. AUDJPY fell 0.1% to 95.97. AUDEUR is up 0.2% to 0.6178 and AUDGBP is flat at 0.5356.
• Equity markets were generally lower with the S&P down 0.6% and the Eurostoxx -0.2% but the DAX up 0.1%. Oil prices were lower with Brent down 1.3% to $76.00/bbl. Copper fell 0.6% and iron ore is around $142/t.
• There are no data or events in Australia today.