Tests 0.6530, Focus On Upcoming CPI Data

Softer commodity prices, particularly iron ore, weighed on the Aussie on Tuesday with AUDUSD down 0.1% to 0.6534 after reaching a high of 0.6559 in the European morning. The USD index rose 0.1%.

• Technicals continue to point to a softer tone for AUDUSD. Initial support is at 0.6504 with the bear trigger at 0.6443. Initial resistance is at 0.6567.
• AUDNZD fell 0.1% to 1.0880 as kiwi was the best performer in the G10. AUDJPY is down slightly to 98.97. Aussie was moderately lower versus the euro and pound at 0.6033 and 0.5175.
• Equities were mixed with the S&P down 0.3% but the Euro stoxx rose 0.4%. Oil prices fell with Brent down 1% to $85.92/bbl. Copper is 0.2% lower and iron ore has fallen around $4 to $104/t.
• Today February CPI is released and expected to rise slightly to 3.5% y/y but forecasts range from 3.3% to 3.8%. The Westpac leading index for February also prints.