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May 18 - 10:55 PM

AUD/USD - Bid With Risk, But Yield Spreads, USD Strength Cap

By Andrew M Spencer  —  May 18 - 08:35 PM
  • +0.15% with risk gently bid, after Thursday's 0.55% strong USD-led drop

  • Positive markets, ASX 200 +0.35%, Nikkei +0.7%, and E-mini S&P +0.15%

  • Rising yield spreads weigh on the AUD, 10yr UST yields are up 18bp this week

  • No Australian data or scheduled RBA events, so the USD, risk likely lead AUD

  • Charts; momentum studies flat line, 5, 10 & 21 DMAs track south

  • 21-day Bollinger bands also head lower - strong bearish setup

  • Targets a test of 0.6573 April base and the 0.6547 March, and 2023 low

  • Thursday's 0.6667 high then 0.6676 21-day moving average initial resistance

    For more click on FXBUZ

Source:
Refinitiv IFR Research/Market Commentary

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