US Debt Deal Optimism Pushes AUDUSD Lower

There has been some volatility during the APAC session following the announcement that there was no debt-ceiling agreement in Monday evening’s meeting between President Biden and House Speaker McCarthy. The USD fell sharply but has more than unwound all those initial losses. AUDUSD is now down 0.1% and trading around 0.6645 after reaching a high of 0.6662 following the end of the meeting.

• See Debt: No Agreement Yet, But Talks Continue for today’s developments on the US debt-ceiling impasse.
• Aussie crosses are generally unchanged. AUDJPY is 0.1% higher at 92.26, while AUDNZD is steady at 1.0578. Aussie is flat against both the euro and pound at 0.6151 and 0.5347 respectively.
• Equity markets are generally higher with the ASX up 0.2% and the Nikkei +0.6% but the CSI 300 down 0.2%. And despite no debt deal, S&P e-minis are 0.3% higher on continued talks. Oil is also higher on positive negotiation comments with Brent up 0.5% to $76.34. Copper is off its intraday peak to be flat and iron ore is around $101/t.
• Later the Fed’s Logan gives welcoming remarks and preliminary May PMIs, May Richmond Fed business confidence and April US new home sales are released.