Weaker Commodities Weigh, Q1 Wages Data On Tap Today

AUD/USD was the second worst performer in the G10 space for Tuesday's session, losing 0.66%. Still, we did see some pockets of strength post the Asia close, but couldn't get above 0.6700. Lows from the start of the week, close to 0.6640 remain intact. The currency last in the 0.6650/55 region. We are still some distance away from key support at 0.6565, the Mar 10 low and a bear trigger.

• Aggregate commodity indices were weaker for Tuesday, with China Apr activity data misses hurting sentiment. The headline Bloomberg index lost 1.13%, while base metals fell close to 1.50%. Copper fell over 2% to $366.70 (CMX basis), while Iron ore is back sub $105/ton, but above yesterday's lows.
• The softer equity tone/coupled with higher US yields also likely weighed, with firmer front end yields aided by US data beats.
• Today the main focus, data wise, will be the Q1 wages print. The market looks for a 0.9% q/q outcome (forecast range is 0.8-1.1%), versus a prior 0.8% outcome. Y/Y is projected at 3.6% versus 3.3% prior.
• US President Biden won't be visiting Australia after the G7 meeting in Japan, as he will return to US for debt talks. Biden invited Australian PM Albanese to the US for a State Visit later this year. Albanese stated the QUAD meeting between Australia, the US, Japan and India may still go ahead (with a senior US official to take Biden's place).