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AUD/USD is showing a bit of life in the last few minutes, though that could be fixing demand into the London fix. It’s been a bruising day for the Aussie as the US dollar rallies on expectations for higher Fed rates. US CPI and retail sales were both hot this week and we could soon be having discussions about 6% Fed funds.
Over in Australia, the RBA’s Lowe is fending off attacks on all fronts for how he’s handled communication around rates.
Technically, the Feb low needs to hold to sustain and kind of bottom here and that comes in at 0.6856, about 20 pips below spot.
Risk appetite has been choppy today similar to yesterday as tech stocks battle rate worries. The latest thrust in risk was lower as US 10-year yields rise to the high of the day, up 3.4 bps to 3.79%.
The next big test will be the Australian jobs report on Thursday (Sydney time). It’s expected to show 20K jobs added.