Waiting For The US CPI

AUDUSD is starting the day around 0.628. It fell to 0.6236 overnight as the USD strengthened and then spiked to 0.6299 before the FOMC minutes drove a rally in the USD.

• The overnight low of 0.6236 in AUDUSD is the new initial support level but markets are likely to be fairly stable while they await tonight’s US CPI. The currency is in a bear trend with lower lows and lower highs. The downtrend is expected to continue through 0.6200.
• AUD rallied against the JPY and is now trading at 92.22 up from the intraday low of 91.295, as Japan maintains its easy monetary policy. AUDNZD was fairly stable overnight and is now at 1.119. AUDGBP fell to 0.565 as GBP rallied more broadly.
• Equity markets were slightly lower overnight as risk appetite wanes as growth fears rise. VIX rose a percent but ended the day where it started at 33.6%. Oil prices unwound more of last week’s rally falling around 2% as US crude stocks rose. Copper prices were down a percent and iron ore was around $96.
• In Australia, Melbourne Institute consumer inflation expectations for October are published and risk printing higher on the back of a pick up in petrol prices. The main focus of the day will be September US CPI.