Weaker On Monday, But Holds Above 0.6400, Iron Ore To Multi Week Lows

AUD/USD probed lower post the Asia close on Monday, but saw support emerge ahead of the 0.6400 level (low around 0.6404). We ended NY trade at 0.6424, which is where we currently track. The pair lost 0.26% on Monday's session. Broader USD gains were evident, with the BBDXY to fresh YTD highs above 1264.

• The A$ was mid range from a G10 stand point on Monday, underperforming the NZD and CAD but outperforming the EUR and JPY.
• The broader USD was aided by a bear steepening in the US yield curve, the 10yr yield to fresh cyclical highs above 4.50%. Equity markets were mixed, with US bourses posting modest gains, while EU stocks fell.
• In the commodity space, the aggregate Bloomberg index fell 0.44%, the metals index down 0.89%. Iron ore is back to a $115/ton handle for the active futures contract, weighed by renewed China property concerns. Demand has also not been as strong as expected ahead of China's peak construction season.
• The local data calendar remains empty today, August CPI prints tomorrow.
• Technically, conditions for the currency remain unchanged. Focus remains on a break back below 0.6400. Key short-term resistance has been defined at 0.6522, the Aug 30 and Sep 1 high.